MarketSnapshot: Single-tenant office

The single-tenant office sector recorded nearly $3.9 billion in third-quarter sales volume, the largest total since the fourth quarter of 2022. Cap rates dipped lower, falling 2 basis points from the second quarter to 7.12% and 8 basis points from one year ago.

The West region led transaction activity for the quarter, recording $1.3 billion in sales and accounting for 34.5% of total volume. The Southwest followed with $940.9 million, representing 24.1% of overall volume. The Southeast ranked third with $642.7 million, or 16.5%, while the Midwest recorded $432.9 million, representing 11.1%. The Northeast contributed $395.5 million, or 10.1% of total volume, while the Mid-Atlantic region trailed with $142.6 million, accounting for 3.7%.

By region, cap rates ranged from a low of 6.84% in the Southeast to a high of 7.75% in the Mid-Atlantic. Cap rates trends were mixed across regions. Average cap rates are up 106 basis points from the recent low of 6.06% recorded in the first quarter of 2022.

Private buyers accounted for 54% of single -tenant office acquisitions through the third quarter, followed by institutional investors at 21%. The institutional share decreased by 2% from 2025, while private investment activity declined by 3% over the same period. REIT/Listed acquisitions rose from just 4% of investment activity in 2025 to 7% as of the third quarter of 2026.