For the first time since 2022, the office national average price per square foot increased and the bottom finally appeared, according to Yardi Matrix Properties sold for $190 per square foot in 2025, up 7.1 percent from 2024, a modest increase considering prices are down 33 percent from the peak in 2021. Despite the uptick in prices, 44.2 percent of transactions with two sales prices for comparison sold at a discount in 2025. More than half of loans maturing in the coming years originated prior to COVID, and weary lenders are less willing to extend the loans of struggling properties. As these loans mature, discounted properties will mount, and markets more conducive to conversions will benefit as these costly projects become feasible.
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