U.S. office investment sales totaled nearly $43 billion through August 2026, as transaction activity continued across major markets despite persistent challenges from elevated vacancy, financing costs and a substantial wave of maturing debt.

According to CommercialCafe’s September national office report, approximately 1,850 office transactions closed during the first eight months of the year, with an average sale price of $205 per square foot. Nineteen of the 25 major markets tracked recorded more than $500 million in year-to-date sales, while 11 surpassed $1 billion.

Dallas has emerged as one of the country’s most active office investment markets. The metro recorded just over $3 billion in office sales through August, trailing only Manhattan, with $5.1 billion, and the Bay Area, with $3.4 billion. Dallas was one of only three U.S. markets to exceed $3 billion in year-to-date office sales.

Texas markets more broadly remain prominent in the investment landscape. Austin recorded nearly $2.6 billion in office sales, giving Texas two of the South’s most active markets.

The sales figures come as investors continue to navigate a sharply divided office market. National office vacancy stood at 17.8% in August, down 90 basis points from a year earlier, but eight of the 25 largest markets tracked by CommercialCafe still reported vacancy above 20%.

At the same time, financing pressures remain significant. Yardi Research data cited in the report shows approximately 14,000 office properties with $289.2 billion in loans that have either recently matured or are scheduled to mature by the end of 2028. Roughly 59% of that debt originated before 2021, when borrowing costs and assumptions about office demand were considerably different.

Those conditions are contributing to repricing and potentially creating opportunities for well-capitalized investors. CommercialCafe noted that nearly half of office properties involved in repeat sales over the past several years traded at discounts to their previous purchase prices.

Dallas is also one of the country’s busiest office development markets. Approximately 3 million square feet was under construction in August, placing it alongside Manhattan and Boston as the only U.S. markets with more than 3 million square feet underway.

For investors, the current environment remains highly selective. Strong transaction volume in markets such as Dallas suggests capital is available for office assets where location, quality, basis and long-term demand support the investment thesis, even as weaker properties continue to contend with refinancing and occupancy pressures.

Source: CommercialCafe