MarketSnapshot: Multi-tenant office

The multi-tenant office sector recorded nearly $18.1 billion in investment sales during the first quarter, representing a 28.5% decline from the previous quarter but a sharp 55.5% increase year over year. This performance marks the sector’s third-strongest quarter since mid-2022.

The West and Southeast regions led in transaction volume for the quarter, recording $5.8 billion and $3.9 billion in sales and accounting for 32.3% and 21.7% of total volume, respectively. The Northeast followed with $3.0 billion, representing 16.8%, while the Southwest recorded $2.8 billion, or 15.4%. The Mid-Atlantic and Northeast regions rounded out the quarter with $1.4 billion and $1.1 billion in transactions, accounting for 7.6% and 6.2% of total volume, respectively.

The average cap rate edged down by 3 basis points to 7.51%, suggesting that the sharp increases seen in recent years are beginning to plateau, and are currently 1 basis points lower than one year ago.

Private buyers accounted for 50% of multi-tenant office acquisitions through the first quarter of 2026, followed by institutional investors at 21%. The share of institutional acquisitions has been gradually increasing since 2023, while private investment activity has declined by 11% over the same period.