2024 Office Sales Volume Drops, Prices Increase

In the last quarter of 2024, office sales totaled $9.1 billion with 365 transactions closing, totaling 46.9 million square feet, according to the latest CommercialEdge data.

When compared to the previous quarter, there was a 37.1 percent decline in sales count nationally and a 25.3 percent drop in square footage. During the third quarter of 2024, there were 580 deals involving 62.8 million square feet. In terms of dollar amount, the last quarter showed a 9.9 percent decline in office sales volume when compared to the $10.1 billion recorded in the third quarter.

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Nevertheless, the average sale price per square foot recorded a 32.1 percent increase—jumping from the $174.03 in the third quarter to $229.93 in the last three months of 2024. Prices showed a consisted upward trend throughout the past year, despite a decline in overall sales count.

Year-over-year comparisons also show a decline in office investment activity. The last quarter of 2023 ended with $11.2 billion across 612 office sales—representing an 18.7 percent drop in sales volume and a 40.3 percent decline in transaction count, according to CommercialEdge. The same trend is reflected in square footage: in 2023’s last quarter 63.6 million square feet changed hands, marking a 26.2 percent drop when compared to the same period in 2024.

Fewer office sales transpired in 2024

In terms of annual deal volumes, 2024 ended with 214.3 million square feet trading across 1,971 transactions. Last year’s square feet transacted showed only a 1.1 percent drop when compared to 2023’s 216.8 million square feet, while it reflects an approximately 9.1 percent drop in sales count when looking at the 2,168 office deals recorded in 2023.

Last year’s total office transaction volume reached $35 billion, showing a 7.4 percent decline when compared to the $37.8 billion recorded in 2023.

—Posted on January 28, 2025