A shift is reshaping the landscape of U.S. office real estate, as companies that once leased their workspace are now stepping up as buyers. According to Site Selection Group, owner-occupied transactions historically made up only a small fraction of office sales. But starting in 2022, that pattern began to change. By 2024, office occupiers accounted for nearly 30% of all acquisition volume, a figure that tripled the previous norm. Site Selection Group noted that this number dipped somewhat in the first quarter of 2025.
The trend is corroborated by JLL, which measured the owner-occupier share at 20% of U.S. office deals in Q1 2025, as reported by Hannah Miet in Urban Land, a publication of the Urban Land Institute. JLL also indicated that the 2024 percentage was 15%, revealing a discrepancy with Site Selection Group’s data. This gap may be due to differences in data sources or the way each organization calculates its figures—one possibly averaging across the year, the other reporting an annualized rate at year’s end.
Despite the numbers not aligning perfectly, both JLL and Site Selection Group agree: occupier-led purchases are on the rise. Meanwhile, Savills points out that more than $2.2 trillion in outstanding commercial real estate loans are set to mature by 2027, with office property loans making up 47% of all currently distressed CRE loans. “Expect additional lender-facilitated sales, deed-in-lieu of foreclosures, and foreclosures as distressed office loans continue to be a major shadow hanging over the entire U.S. office sector in the short term,” Savills wrote.
The precarious situation of maturing loans has been a recurring theme in GlobeSt.com’s coverage, which has highlighted the limited options for borrowers facing refinancing challenges. The so-called “extend-and-pretend” strategy—where lenders delay recognizing losses in hopes of lower rates and improved borrower fortunes—cannot last indefinitely. Eventually, lenders may have to take over properties, borrowers might need to inject new capital, or assets will be sold at distressed prices.
This evolving environment has brought new competition between occupiers and investment funds seeking to snap up distressed assets. Distressed sales often resemble a Dutch auction, with prices dropping until a buyer steps in. The key question: Who will move first?
The interests of occupiers and traditional distressed buyers are not always aligned. While investors hunt for the lowest possible price, occupiers—especially large companies—are also seeking favorable deals, but with different motivations. As JLL’s Global Real Estate Perspective notes, “With less new space coming to the market and availability concentrated in less desirable buildings and locations, occupiers will need to explore options earlier as competition for the best space intensifies.” For many, the answer is to secure a property by purchasing it outright.
Site Selection Group adds, “For many companies, owning space offers greater control, long-term financial predictability, and the ability to customize work environments without relying on landlord investment.”
The firm notes that this trend is especially pronounced in cities where property values have reset and financing for institutional buyers remains conservative. As a result, companies with capital to deploy are taking advantage of opportunities that previously would have gone to large investors.
Add another interesting complication to the 2025 office market.
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