MarketSnapshot: Multi-Tenant Office

The multi-tenant office sector recorded $16.0B in investment sales during the third quarter, representing a 2.4% decline from the second quarter but a sharp 34.7% increase year-over-year. This performance marks the sector’s third strongest quarter since late 2022.

The West and Northeast regions led in transaction volume for the third quarter, each recording approximately $4.5B in sales and accounting for 28.1% and 28.0% of total volume, respectively. The Southwest followed with $2.7B, representing 17.0%, while the Southeast recorded $2.6B, or 16.1%. The Mid-Atlantic and Midwest regions rounded out the quarter with $0.9B in transactions each, accounting for 5.4% and 5.3% of total volume, respectively.

The average cap rate edged down by a single basis point to 7.55%, suggesting that the sharp increases seen in recent years are beginning to plateau, though cap rates remain 27 basis points higher than one year ago.

Private buyers accounted for 52% of multi-tenant office acquisitions through the third quarter of 2025, followed by institutional investors at 21%. The share of institutional acquisitions has been gradually increasing since 2023, while private investment activity has declined by 10% over the same period.