MarketSnapshot: Multi-tenant office

The multi-tenant office sector recorded nearly $23.0 billion in investment sales during the fourth quarter, representing a 32.2% increase from the third quarter and a sharp 20.7% increase year over year. This performance marks the sector’s strongest quarter since mid-2022. Annual volume is up 28.5% from 2024.

The Northeast and West regions led in transaction volume for the fourth quarter, recording $6.0 billion and $5.5 billion in sales and accounting for 26.0% and 23.8% of total volume, respectively. The Southeast followed with $4.5 billion, representing 19.6%, while the Southwest recorded $2.7 billion, or 11.9%. The Midwest and Mid-Atlantic regions rounded out the quarter with $1.9 billion and $1.7 billion in transactions, accounting for 8.2% and 7.4% of total volume, respectively.

The average cap rate edged down by a single basis point to 7.53%, suggesting that the sharp increases seen in recent years are beginning to plateau, though cap rates remain 10 basis points higher than one year ago.

Private buyers accounted for 54% of multi-tenant office acquisitions through the fourth quarter of 2025, followed by institutional investors at 23%. The share of institutional acquisitions has been gradually increasing since 2023, while private investment activity has declined by 7% over the same period.