MarketSnapshot: Multi-tenant office

The multi-tenant office sector recorded nearly $16.5 billion in investment sales during the second quarter, representing a 12.8% decline from the previous quarter and an 8.0% decrease year over year.

The West and Northeast regions led in transaction volume for the quarter, recording $4.5 billion and $4.2 billion in sales and accounting for 23.9% and 22.2% of total volume, respectively. The Southwest followed with $2.9 billion, representing 15.6%, while the Southeast recorded $2.3 billion, or 12.4%. The Midwest and Mid-Atlantic regions rounded out the quarter with $1.4 billion and $1 billion in transactions, accounting for 7.6% and 5.5% of total volume, respectively.

The average cap rate increased by 3 basis points to 7.50%, suggesting that the sharp increases seen in recent years are beginning to plateau, and are currently 1 basis point lower than one year ago.

Private buyers accounted for 52% of multi-tenant office acquisitions through the second quarter of 2026, followed by institutional investors at 23%. The share of institutional acquisitions has been gradually increasing since 2023, while private investment activity has declined by 9% over the same period.