The commercial real estate sector is showing signs of recovery, with office building sale prices experiencing their first annual increase since 2021. This positive trend marks a significant shift after a period of decline, indicating renewed investor confidence and market stabilization.
Key Takeaways
- Office sale prices rose 6.1% in 2025, reaching $182 per square foot, up from $172 the previous year.
- Four major metropolitan areas have surpassed their pre-COVID-19 sale price levels.
- Manhattan recorded over $1 billion in office sales in January 2026, continuing a strong sales volume trend from 2025.
Market Rebound and Price Appreciation
CommercialCafe, referencing Yardi Matrix data, reported that the average sale price for office buildings concluded 2025 with a notable 6.1% increase. This brought the average price per square foot to $182, a significant jump from the $172 recorded in 2024. While many markets are still below their 2019 valuations, this annual rise signals a recovery following substantial price increases observed last year.
Markets Exceeding Pre-Pandemic Values
Analysis of the top 25 metropolitan areas revealed that four have successfully surpassed their pre-pandemic (2019) sale price benchmarks. Miami led this group with an impressive 20% price increase compared to 2019. Other markets showing strong recovery include Dallas, which saw an 8.5% rise, Detroit at 8.4%, and Orlando with a 5.8% increase.
Manhattan Leads Sales Volume
In terms of sales activity, Manhattan has emerged as a frontrunner to start 2026. The borough closed January with over $1 billion in office sales, positioning it to continue the robust sales momentum established throughout 2025. In total, 2025 saw 73 Manhattan office sales, accumulating nearly $7.8 billion and marking the highest sales volume since the beginning of the decade.