Yet another report on the office market offers no good news for investors. Instead, it highlights a slide in asset values, with the average office property price down at least 25% across the nation. The trend is predicted to continue in 2024.

More than 20% of the 1,700 office properties sold since January 2023 changed hands at a loss, according to a February 2024 report from CommercialEdge. Despite the frequent talk about a "flight to quality" in office leasing, losses were concentrated in higher quality Class A or A+ buildings, where 43% sold for less than their purchase price. This was the case for only 19% of B-rated and 13% of C-rated properties. However, lower-end buildings not in prime locations are taking a hit, a trend which is expected to accelerate, said CommercialEdge director Peter Kolaczynski.

Just $1.5 billion in office properties were sold through the end of January, at an average price of $195 per SF. California's Bay Area had the highest sales volume with $259 million changing hands at an average $244 per SF.