Key Takeaways
- • Multitenant office investment sales reached $22.7 billion in Q3 2026, up 31.8% from Q2 and 27% year over year from $17.9 billion, according to Northmarq's Market Snapshot report.
- • The average office cap rate rose 9 basis points to 7.58% in Q3 2026, up 9 basis points from both Q2 and Q3 2025.
- • Year-to-date sales of $58.8 billion through September put 2026 on pace to exceed the $71.9 billion total for all of 2025, requiring roughly $13.1 billion in Q4.
- • Mid-Atlantic volume more than doubled to $2.6 billion in Q3 from $1.2 billion in Q2, while the Southeast rose roughly 52% to $4.1 billion.
- • Average office cap rates have risen from 6.37% in 2022 and 7.50% in 2025, more than 120 basis points above 2022 levels, indicating pricing is still resetting as buyers return.
Summary
Office investment activity rebounded sharply in the third quarter of 2026, with multitenant office sales reaching $22.7 billion, up 31.8% from the second quarter and 27% from a year earlier, when sales totaled $17.9 billion, according to Northmarq's latest Market Snapshot report. The rebound followed a slowdown in transaction activity during the first half of the year.
The rebound has been accompanied by continued upward pressure on yields. The third-quarter average cap rate of 7.58% was up 9 basis points from both the prior quarter and the same period in 2025. Northmarq data show average office cap rates were 6.37% in 2022 and 7.50% in 2025, and the 2026 year-to-date average of 7.58% sits more than 120 basis points above 2022 levels. Rising volume alongside expanding yields suggests buyers are re-entering the market at pricing that has not yet fully settled.
Year-to-date multitenant office sales totaled $58.8 billion through September, compared with $71.9 billion for all of 2025. Northmarq estimates that a fourth-quarter total of roughly $13.1 billion would push 2026 past last year's volume, and says the sector is on pace to exceed 2025 levels if activity holds near current rates.
Regionally, the Mid-Atlantic posted the largest gains, with transaction volume more than doubling from $1.2 billion in the second quarter to $2.6 billion in the third, compared with about $1.1 billion a year earlier. The Southeast also posted a strong increase, rising from $2.7 billion to $4.1 billion, a gain of roughly 52% quarter over quarter and above the $3.2 billion recorded a year earlier. Per the report, these gains came outside the country's largest office market.
The rebound has been accompanied by continued upward pressure on yields. The third-quarter average cap rate of 7.58% was up 9 basis points from both the prior quarter and the same period in 2025. Northmarq data show average office cap rates were 6.37% in 2022 and 7.50% in 2025, and the 2026 year-to-date average of 7.58% sits more than 120 basis points above 2022 levels. Rising volume alongside expanding yields suggests buyers are re-entering the market at pricing that has not yet fully settled.
Year-to-date multitenant office sales totaled $58.8 billion through September, compared with $71.9 billion for all of 2025. Northmarq estimates that a fourth-quarter total of roughly $13.1 billion would push 2026 past last year's volume, and says the sector is on pace to exceed 2025 levels if activity holds near current rates.
Regionally, the Mid-Atlantic posted the largest gains, with transaction volume more than doubling from $1.2 billion in the second quarter to $2.6 billion in the third, compared with about $1.1 billion a year earlier. The Southeast also posted a strong increase, rising from $2.7 billion to $4.1 billion, a gain of roughly 52% quarter over quarter and above the $3.2 billion recorded a year earlier. Per the report, these gains came outside the country's largest office market.
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