Office Sale Prices Show Early Recovery
Average office sale prices posted their first annual increase since 2021, signaling a tentative recovery for the sector. According to CommercialCafe, citing data from Yardi Matrix, the average price of an office building reached $182 per square foot at the end of 2025. That figure represents a 6.1% increase from $172 a year earlier. While most markets remain well below their 2019 peaks, momentum has begun to build after notable price gains recorded throughout last year.
Select Metro Areas Outperform Pre-Pandemic Levels
Despite uneven conditions nationwide, a handful of major metros have moved beyond their pre-COVID benchmarks. Among the top 25 markets analyzed, four have surpassed 2019 values. Miami led the group, with office sale prices rising 20% since 2019. It was followed by Dallas at 8.5%, Detroit at 8.4%, and Orlando at 5.8%. These gains highlight how migration trends and local demand continue to shape pricing outcomes.
Manhattan Sales Volume Sets the Pace
At the start of 2026, transaction activity has been led by Manhattan, which recorded more than $1 billion in office sales during January alone. That early performance places the market on track to extend the momentum established in 2025. Over the full year, nearly $7.8 billion in office transactions were completed across 73 deals, marking the highest annual sales count in Manhattan since the beginning of the decade.
Landmark Deal Underscores Market Shift
A notable example of renewed investor confidence is the sale of Park Avenue Tower. The Midtown Manhattan property changed hands for $730 million in January 2026. While challenges remain across the office sector, deals of this scale suggest that pricing stabilization may be taking hold in core markets.
