MarketSnapshot: Single-Tenant Office

The single-tenant office sector posted $2.5B in third quarter sales volume, up 11.5% from the second quarter and nearly 28% year-over-year. Cap rates declined, falling 7 basis points to 7.18%, though they remain up 5 basis points year-over-year.

The West region dominated transaction activity in the third quarter, recording $864.0M in volume and accounting for 34.2% of the total. The Southeast followed with $550.0M, representing 21.8% of overall volume. The Midwest ranked third with $510.3M, or 20.2%, while the Northeast recorded $255.5M, representing 10.1%. The Southwest contributed $199.0M, or 7.9% of total volume, and the Mid-Atlantic region trailed with $149.5M, accounting for 5.9%.

By region, cap rates ranged from a low of 6.61% in the West to a high of 8.03% in the Midwest. Cap rates were mixed across all regions. Average cap rates are up 110 basis points from the recent low of 6.08% recorded in the first quarter of 2022.

Private buyers accounted for 58% of single-tenant office acquisitions through the third quarter of 2025, followed by institutional investors at 23%. The private share increased sharply by 29% from 2024, while institutional investment activity increased by 4% over the same period. REIT/Listed acquisitions fell from 26% of investment activity in 2024 to 2% as of the third quarter of 2025.