MarketSnapshot: Single-tenant office

The single-tenant office sector recorded $1.9 billion in second quarter sales volume, down 16.5% from the previous quarter and 18.7% year over year. Cap rates dipped lower, falling 6 basis points to 7.14%, down 12 basis points from one year ago.

The Southeast region led transaction activity for the quarter, recording $522.6 million in volume and accounting for 27.9% of total sales. The West followed with $474.2 million, representing 25.3% of overall volume. The Southwest ranked third with $426.2 million, or 22.8%, while the Midwest recorded $304.9 million, representing 16.3%. The Northeast contributed $104.1 million, or 5.6% of total volume, while the Mid-Atlantic region trailed with $41 million, accounting for 2.2%.

By region, cap rates ranged from a low of 6.72% in the Southeast to a high of 7.83% in the Midwest. Cap rates trended down in all regions, except the West and Southwest. Average cap rates are up 106 basis points from the recent low of 6.08% recorded in the first quarter of 2022.

Private buyers accounted for 56% of single-tenant office acquisitions through the second quarter, followed by institutional investors at 26%. The institutional share decreased by 3% from 2025, while private investment activity increased 2% over the same period. REIT/Listed acquisitions rose from just 4% of investment activity in 2025 to 7% as of the second quarter of 2026.