CommercialEdge – National Office Report, Apr 2025

The report focuses on the analysis of the state of office real estate in the United States, highlighting the rise in distressed assets and changes in office space utilization.

A wave of distressed assets anticipated since the beginning of the pandemic has begun to materialize, particularly in major urban properties. Office usage remains at an average of 54%, attributed to persistent remote work trends. In 2024, 25 million square feet of distressed office transactions were recorded, a 39% increase compared to the average of the previous three years. Chicago recorded the highest number of distressed transactions. Pressure on office property owners is expected to ease as the volume of new market offerings declines.