- After years of sluggish investment, institutional buyers and lenders are returning to the office market as prices reach attractive entry points.
- Trophy and well-located office assets in mixed-use settings are drawing renewed interest, with Hines and Rialto Capital closing a $2.5B credit fund focused on office.
- US office sales totaled $185B in Q1 2025, up 34% year-over-year, signaling a broader rebound.
- Tariff policy under the Trump administration is creating uncertainty, with some foreign investors pausing activity in response to new trade risks.
After years of being out of favor, the US office market may be poised for a comeback, reports Bisnow. At a recent commercial real estate event in Atlanta, developers and investors pointed to signs of office recovery, highlighting renewed interest in the sector despite ongoing economic uncertainty.
Pricing Finds A Bottom
Office buildings have seen sharp declines in value since the pandemic disrupted workplace norms, but those same low prices are now drawing in opportunistic capital. “At some point there is a price point that people believe is low enough that they can make it make sense,” said Jeffrey Graham of The Graham Group. Despite ongoing challenges in raising capital, several firms have resumed office investments at scale.
A Targeted Bet On Top-Tier Assets
Hines, in partnership with Rialto Capital, is leaning into the sector with a $2.5B office-focused credit fund aimed at recapitalizing and refinancing quality assets. “We believe trophy office and well-placed office in mixed-use will continue to thrive,” said Hines’ Senior Managing Director Vikram Mehra. That optimism is echoed by other investors, particularly for stabilized or repositionable properties in major and secondary markets.
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Atlanta Shows Early Signs Of Life
Fifteen office properties changed hands in Atlanta in Q1 2025, reflecting growing momentum in the office recovery. Notable trades included TownPark Commons for $42M. Buyers like Cousins Properties and the Atlanta Braves Development Co. have deployed significant capital, encouraged by steep discounts and long-term upside.
National Volume Surges
According to JLL, US office investment rose to $185B in Q1 2025, marking a 34% increase over the same period last year. Advisory firms like Patterson Real Estate are also seeing a rise in office-related deal flow, especially for recapitalization plays.
The Tariff Wildcard
Despite improving fundamentals, trade tensions threaten the sector’s momentum. New tariffs from the Trump administration—10% on all imports and 30% on goods from China—are causing foreign capital to hesitate. “That’s the general sentiment of Europe and China, who are not as excited to invest in … the US right now,” said Robles Partners’ Ben Hautt.
Impact On Development
Developers relying on imported materials or foreign equity are seeing deals stall. Patterson Real Estate’s Todd Flaman noted a dozen recent investor withdrawals due to tariff concerns, especially in sectors like multifamily.
Looking Ahead
While core capital is returning to office, policy-driven headwinds could delay a full recovery. Still, many insiders believe the worst is behind the sector and that pricing resets have created rare opportunities for long-term investors.
Why It Matters
After years of value erosion and investor apathy, the US office sector is showing early signs of office recovery and stabilization. With strategic investment and careful navigation of macro risks, the asset class may once again become a viable target for capital allocation.
