Office buildings’ average sale price fell 11 percent to $174 per foot in 2024, as demand for space remained weak, according to Yardi. In 2023 it was $196 in 2023. The drop was not as severe as in 2023, however, when the average sale price of an office decreased 24 percent from 2022. There has been massive value destruction in the office sector since the onset of the pandemic, with the national average sale price down 37 percent since 2019.

Highly rated properties and those in commercial business districts saw the biggest declines in prices last year. Properties rated A or A+ decreased 22 percent in 2024, while B-rated properties slipped just 3 percent.

Similarly, the average sale price of CBD buildings fell 28 percent while suburban properties decreased 15 percent. Properties in urban submarkets, defined as within a city center but outside the central business district (CBD), increased 7 percent in the year. The declines are largely consistent with the trends in offi