Deal volume in the office sector creeped higher in the second quarter of the year, but investment activity still remains below pre-pandemic levels, according to a new report from Colliers.
Q2 sales volume totaled $26 billion, an increase from Q1's $20.5 billion, with suburban properties accounting for $18.8 billion of that total. By contrast, investors poured just $7.2 billion into assets in CBD locations.
Thanks to its strong life science presence, Boston was the most active office market in the first half of the year and drew $6.1 billion in sales, followed by San Jose at $2.5 billion. Pricing in the Western states is highest, at an average of $408 per square foot, followed by the Northeast at $335 per square foot. The average US price is $287 per square foot, a decrease from Q2 2020's $291 per square foot.
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