Office workers were not the only ones returning to the workplace last year. At the same time, investors were reentering the office market in growing numbers. As a result, building sales accelerated across the sector.
Stable interest rates, improving fundamentals, and clearer pricing expectations supported the rebound. Consequently, office sales volume reached more than $56 billion in 2025. This reflected an increase of $10 billion from the prior year.
Notably, year-over-year sales growth exceeded 20 percent. Therefore, the office sector outperformed all other major property types. In contrast, other sectors experienced more modest gains.
Several factors were credited for the renewed momentum. Most importantly, a more favorable interest rate environment improved investment conditions. The 10-year Treasury yield declined from above 4.5 percent to near 4.1 percent by year-end.
Although borrowing costs remain elevated compared to past cycles, recent stability restored investor confidence. As a result, more loans and acquisitions were pursued. Consequently, total commercial real estate sales increased by more than $25 billion in 2025.
Meanwhile, occupancy trends also supported office investment. National vacancy peaked midway through the year. Shortly after, net absorption turned positive for the first time in several years.
In strong markets such as New York, the recovery began even earlier. Therefore, investor interest intensified in well-positioned urban assets.
At the same time, new office construction remained historically limited. As a result, future supply is expected to stay constrained. Ultimately, this imbalance is likely to support long-term value across select office markets.
About CORFAC International – New York
CORFAC International – New York, an extension of CORFAC International delivers over 90 years of Expertise for Commercial Real Estate in the Greater NY Metro Area. Comprised of a partnership of WCRE & Chilmark Real Estate Services, CORFAC International – New York provides practical guidance, analyzes crucial transaction details for optimal workspaces and deals, by leveraging market knowledge to drive client success. As committed advocates, we deliver measurable results, serving global clients with expert advisory and property management. We match your dedication with proven expertise.
