Bradford Allen is pleased to share with you our latest office market report.
The second half of the year in the suburban office market:
- Vacancy was 26.0%, up almost imperceptibly from 25.7% at the end of 2024, suggesting the market may be nearing an inflection point.
- Direct net absorption in the second half of 2025 was nearly negative 300,000 square feet, bringing annual net absorption to negative 179,000 square feet, a significant improvement from the negative 1.3 million square feet of absorption in 2024.
- Investment sales activity slowed in the second half of the year, with the year closing out at $188 million of transactions completed in 2025—nearly half the volume seen the year prior. The average price per square foot in these transactions was just $49.
- It’s not all bad news for buildings in the suburbs—overall, tenants continue to recognize the operational advantages and cost efficiencies of well-located suburban assets, which continue to drive leasing velocity in quality properties and spec suites.