The U.S. office market is gaining momentum, with JLL reporting a 42% increase in transaction volume to $25.9 billion. Interest in office space from capital markets is increasing, with the number of bids rising by 50%. Top-tier office buildings are in high demand, while new construction is minimal, leading to a potential shortage.

As the recovery in the office market accelerates, larger deals of $100 million or more are increasing by 130%. Demand for high-quality office space is rising among institutional investors, driving bidding activity. The shift from “office curious” to “office serious” is evident across the industry, with lower interest rates playing a key role.

Despite a decrease in office inventory and a lack of new construction, demand for office space remains strong. Company downsizing rates are stabilizing, and REIT acquisitions are robust. Lower interest rates are expected to support dealmaking, but economic weakness may pose challenges in the future.

Read more at CNBC: Office investor demand way up in the first half of 2025, says JLL