After struggling since the pandemic, the U.S. office sector sees hope as investor activity increases, according to the Wall Street Journal. While sales numbers still have not recovered to their pre-pandemic levels, they have begun to see their first year-over-year increases since 2021.
As interest has been renewed in the sector, the volume of U.S. office building sales increased 20 percent from 2023, to a total of $63.6 billion, reports MSCI. Though pre-pandemic levels were well above at $142.9 billion, the sector is making a slow but steady comeback.
Investors are taking more risks as the sector begins to look up, buying premium-quality buildings with debt, half-empty towers for pennies on the dollar or bidding on obsolete offices to convert them into apartments, said the Wall Street Journal.
Bolstered by the tech and finance sectors, New York City is taking the lead in the recovery trajectory, as it has experienced 25.3 percent year-over-yea
