The investment outlook for the office asset class is improving, despite the current lackluster level of leasing.
The release of pent-up buyer demand paired with the shift in risk preferences lifted the average office sale price by over 6 percent in 2021 and compressed the mean cap rate below 7 percent for the first time since before 2000, according to Marcus & Millichap.
It predicts that gaps between bids and asks should narrow as the year progresses and more companies make formal decisions regarding their future office space use.
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