Read also:
- ‘I joined the Druids for Spring Equinox – one sacrifice rule disappointed me’
- Lamine Yamal impostor fools excited fan while casually walking down the street of Barcelona
- Southwest flight nearly departs from taxiway in Orlando after crew ‘mistook the surface for the nearby runway’
- Former Cowboys star WR comes out of retirement to join Washington Commanders in 2025
- Carrie Underwood and Mike Fisher’s first red carpet in years sparks curiosity about her ‘hidden’ husband
square feet
Sales of office buildings jumped nearly 21 percent last year, and leasing activity is up, too. Companies are looking for more space as work-from-home policies peter out.
By Joe Gose
For office landlords, a bad dream that began in March 2020 seems to finally be nearing an end — but only if you’re in well-located, high-end properties in major U.S. markets.
Sales of office buildings across the country totaled $64.3 billion last year, up nearly 21 percent from 2023, according to MSCI Real Assets, a provider of commercial property research. In central business districts, which have suffered from empty buildings and streets long after pandemic stay-at-home orders ended, the pickup was even faster.
Leasing activity is also gaining momentum, according to a report by CBRE, a real estate services firm: In 2024, 6.5 million more square feet of U.S. office space was leased than vacated, the highest amount in any year since 2019. In newer offices in higher-cost markets, like New York, Silicon Valley and Austin, Texas, the average asking rate of $65 per square foot was up nearly 17 percent from the previous year, according to JLL, a real estate services firm.
Sale prices are still declining, but more slowly after years of free-falling devaluation. Last year, the average sales price for U.S. office properties fell 11 percent, according to CommercialEdge, a real estate research organization — an improvement from the 24 percent drop in 2023.
Companies are looking for more office space as work-from-home policies peter out, office landlords and developers said, with many seeking premium buildings with state-of-the-art amenities.
Sales of foreclosed properties and distressed mortgages are also increasing, which could be a sign that investors think assessed values have stabilized enough to take on the risk, suggesting a bottoming of the market.
If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.
Already a subscriber? Log in.
Want all of The Times? Subscribe.
