A significant amount of capital traded hands, with several big deals struck in 2025 as investors snapped up prime office buildings, especially those in the top tiers of the national office market.
Nationwide, more than $53 billion of office space was sold at an average of $192 per square foot – an average that has steadily risen, according to a new report from CommercialCafe.
Manhattan captured the highest sales volume, $7.8 billion and the highest average sale price per square foot ($496). A big chunk of that was due to the sale of 42-storey 590 Madison Ave., the Class A former IBM building that traded for $1.1 billion – the biggest deal in three years. Another coup was the sale of 31,000-square foot 165 Mercer St. in SoHo for $40 million, or $1,290 per square foot, a market high. The 147-year-old, renovated structure includes two floors of flagship retail and four offices over five floors, including a penthouse duplex.
Washington, D.C., however, led the nation with the highest single-market volume of office space traded in 2025 (27.4 million square feet) and the highest number of transactions (173) for a total of $4.8 billion. Edison Place at 701 Ninth St. NW, headquarters of Exelon's subsidiary Pepco Holdings, was the biggest deal, selling for $175 million.
Office sales also boomed in some California metros. The Bay Area ranked second nationally, raking in a total of $5.2 billion; its biggest deal was the $906 million sale of 300 Lakeside Drive in downtown Oakland to PG&E for its headquarters following the utility's move from San Francisco. San Francisco, however, also recorded office sales totaling $4.1 billion, including the sale of a 45,674-square-foot two-story office property at 1540 El Camino Real in Menlo Park for $103.75 million in December, at a record $2,271 per square foot.
Dallas-Fort Worth also performed well with $3.8 billion in office sales, including a deal for The Link Uptown. The 25-story, 292,000 square foot, lifestyle office property built in 2021 was more than 90% leased when purchased for a reported $218 million by real estate investment trust Cousins Properties.
Based on price per square foot, the nation's top office markets were Manhattan ($496.30), San Francisco ($401.67), Brooklyn ($384.11), Miami ($355.76) and the Bay Area ($354.34).
In Brooklyn, a four-story office building at 205 Montague St. fetched $1,848 per square foot; however, it is to be replaced by a 47-story mixed-use development. Miami recorded a deal involving the buy-back of a JPMorgan Chase retail branch at 1801 Alton Road for $939 a square foot; the metro's average sale price is $356 per square foot.
By total office space traded, Washington, D.C. led with 27.4 million square feet exchanged. Chicago followed with 27.3 million square feet, Houston with 25.2 million square feet, Dallas-Fort Worth with 17.7 million square feet and Atlanta with 17 million square feet.
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