With hybrid and remote work models taking precedence in working models, office sale prices continued to drop throughout 2024, according to CommercialEdge’s February 2025 Office Market Report. The average sale price fell by 11 percent year-over-year, resulting in an average of $174 per square foot at the end of 2024, compared to $196 in 2023.
Class A and A+ properties declined by 22 percent, class B fell by 3 percent and buildings in commercial business districts dropped by 28 percent, while properties in the suburbs increased by 7 percent.
The national vacancy rate increased by 180 basis points, year-over-year, to 19.7 percent in January. Vacancy rates have steadily risen, as remote and hybrid learning popularize since the pandemic.
With 44.1 million square feet of office stock delivered in 2024, only 9.1 million square feet of construction projects began over the past 12 months. This decline represents a 67 percent decrease from the 27.5 million squa
