After a challenging period starting in March 2020, the office real estate market is experiencing a revival, especially for high-end properties in major U.S. cities. Sales of office buildings hit $64.3 billion in 2024, marking a 21% increase from the previous year. Leasing activity has surged as more companies seek quality office spaces, indicating shifts in work-from-home policies. Though sale prices continue to decline, the pace is slowing, suggesting a stabilization of property values, particularly in premium markets like New York and Silicon Valley.
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 2024, 6.5 million more square feet of U.S. office space was leased than vacated, the highest amount in any year since 2019.
As work-from-home policies peter out, office landlords and developers said, companies are looking for more office space, seeking premium buildings with state-of-the-art amenities.
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