MarketSnapshot: Single-tenant office

The single-tenant office sector posted $2.5 billion in first quarter sales volume, down 21.9% from the previous quarter and 20.1% year over year. Cap rates dipped lower, falling 6 basis points to 7.23%, up 1 basis point from one year ago.

The West region led transaction activity for the quarter, recording $547.9 million in volume and accounting for 22.2% of total sales. The Mid-Atlantic followed with $543.3 million, representing 22.0% of overall volume. The Midwest ranked third with $405.9 million, or 16.4%, while the Southeast recorded $383.8 million, representing 15.6%. The Southwest contributed $330.0 million, or 13.4% of total volume, while the Northeast region trailed with $256.9 million, accounting for 10.4%.

By region, cap rates ranged from a low of 6.48% in the West to a high of 8.35% in the Midwest. Cap rates trended down in all regions, except the Northeast and West. Average cap rates are up 115 basis points from the recent low of 6.08% recorded in the first quarter of 2022.

Private buyers accounted for 46% of single-tenant office acquisitions through the first quarter, followed by institutional investors at 40%. The institutional share increased sharply by 17% from 2025, while private investment activity declined 9% over the same period. REIT/Listed acquisitions rose from 4% of investment activity in 2025 to just 10% as of the first quarter of 2026.