2025 Office Investment Update
Total sales volume has hit new heights, according to Yardi Matrix data.
The final quarter of 2025 closed with $12.7 billion in office sales across 524 transactions, according to the latest Yardi Matrix data. These deals accounted for 68.3 million square feet of space, with assets trading at an average of $217.30 per square foot.
READ ALSO: LaSalle IM: Why 2026 Feels Like ‘Groundhog Day’ for CRE Investing
Total deal volume declined 26.6 percent year-over-year compared to the fourth quarter of 2024, when investors closed $17.3 billion across 821 transactions. That earlier period also saw higher trading activity by square footage, with 104.5 million square feet changing hands.
Despite the lower transaction volume in 2025, pricing continued to improve. Yardi Matrix data shows that the average price per square foot rose 10.3 percent year-over-year, up from $196.98 in the fourth quarter of 2024.
Dollar volume fluctuations
Office investment activity has consistently fluctuated quarter by quarter in 2025. The first three months closed with $11.6 billion—or 87.5 million square feet—changing ownership across 692 sales. Meanwhile, the second quarter ended with 94 million square feet in 747 deals, generating $14.7 billion in sales.
READ ALSO: Return-to-Office Numbers Hold Strong
By the end of the third quarter, the sector’s investment volume slightly dropped to $14 billion, as 790 sales closed, involving 88.4 million square feet.
Office pricing in 2025 grew each quarter: from the $176.10 per square foot at the end of the first quarter to the $217.30 per square foot value during the last one—a steady, 23.4 percent total growth.
Investment growth
There were 2,753 office sales in 2025, encompassing 338.2 million square feet and totaling $53 billion in transaction volume, with properties trading at an average of $192.43 per square foot.
While 2025 activity exceeded the prior year’s levels, it remained below the 2022 peak. For comparison, 2024 closed with 2,537 office sales totaling 305.6 million square feet. Those transactions generated $44.1 billion, with assets trading at an average of $177.26 per square foot.
Overall, office sales activity in 2025 increased 20.2 percent year-over-year, while pricing rose 8.6 percent over the same period.
—Posted on January 27, 2026
During the third quarter of 2025, the office sector’s transaction volume added up to $11.7 billion across 554 completed deals, according to the latest Yardi Matrix data. These sales involved 65.2 million square feet, with assets trading at an average price of $220.83 per square foot.
Total sales volume in the third quarter was 12.5 percent higher than in the same period last year, when investor activity reached $10.4 billion. At that time, 622 properties totaling 78.2 million square feet changed hands.
Although less square footage traded during the year’s third quarter, deals closed at higher prices, surpassing the $180.02 per-square-foot average posted in the third quarter of 2024.
Quarterly performance in 2025
Despite an uptick in bargain sales, investor interest and transaction volume have continued to grow throughout 2025, showing consistent quarterly momentum.
In the first quarter, for instance, activity reached 673 transactions encompassing 86.8 million square feet, totaling $11.5 billion in sales. During this period, properties sold at $179.13 per square foot.
The second quarter brought 703 deals covering 92.1 million square feet and generating $14.4 billion, marking the busiest period of 2025 so far. Office properties during this quarter sold for an average of $188.83 per square foot.
Comparing the two quarters reveals steady growth—a 6 percent increase in total square footage traded, a 25.2 percent rise in sales volume, and a 5.4 percent uptick in average pricing per square foot.
Cumulative 2025 totals
Overall, each of the first three quarters of 2025 outperformed the same periods in 2024, with more space changing hands at higher values. Combined, office investment activity during the first nine months of 2025 totaled $37.6 billion—a 40.3 percent increase from the $26.8 billion recorded in the first three quarters of 2024.
Despite ongoing turbulence in the sector, the future of the office investment could gain further traction heading into the final quarter of the year.
—Posted on October 30, 2025
In the second quarter of 2025, office transactions reached $8.3 billion, according to the latest Yardi Research Data. A total of 274 deals closed, amounting to 38.3 million square feet of space changing ownership.
On a year-over-year level, the market’s total transaction volume dropped 9.8 percent, with last year’s second quarter comprising $9.2 billion in sales across 569 transactions and including 60 million square feet. During 2025’s second quarter, there was a 56.6 decrease in square footage sold, compared to the same period of last year.
Office prices increase quarter-over-quarter
Meanwhile, office assets traded at an average of $213.53 per square foot in the second quarter—up 15.4 percent from $185.03 in the previous quarter. Despite fewer transactions and lower overall square footage traded, the average price per square foot is also 35.6 percent higher than the same period last year, when assets sold for $157.43 per square foot.
In the first half of the year, 893 sales involving 112.9 million square feet office changed hands, generating a total of $19.6 billion in office sales volume. Properties traded at an average sale price of $194.16 per square foot.
—Posted on July 29th, 2025
In the first quarter of 2025, office sales totaled $10.1 billion with 486 deals closing and 61.6 million square feet changing hands, the latest CommercialEdge data shows.
Compared to the previous year’s first-quarter data, even if the number of deals was similar—485 transactions—the amount of dollar volume and square footage that transacted was lower during this period, marking a positive growth in the sector so far in 2025.
This marked a 48.5 percent increase over the $6.8 billion recorded in the first quarter of 2024, along with a 27.8 percent rise in square footage compared to the 48.2 million square feet of office space that changed hands.
READ ALSO: What’s Defining Office in 2025?
At the end of this year’s first quarter, office assets traded at an average sale price of $181.46 per square foot. This represents a 13.7 percent increase from the $159.56 per square foot recorded at the end of 2024’s last quarter.
Room for growth
Last year ended with 2,382 transactions generating $43 billion, across 264.4 million square feet of space that was sold at an average price of $179.91 per square foot. This year’s total added up to 495 deals involving 62.6 million square feet, with the total office sales volume reaching $10.3 billion and an average sale price of $183.41 per square foot.
So far in the second quarter of 2025, there were nine deals involving 1 million square feet of space, according to CommercialEdge. The average sale price per square foot in the second quarter stands at $536,74 per square foot—significantly above the average $158.78 per square foot recorded at the end of 2024’s second quarter.
—Posted on April 30th, 2025
You must be logged in to post a comment.