The U.S. office market is showing more signs of recovery in 2026, with sales activity picking up even as other commercial real estate sectors remain relatively flat, according to BisNow.
Office was one of only two traditional commercial real estate sectors to record sales growth in July, with $7.6 billion in transactions nationwide. Office pricing also rose 4% from July 2025, making it the only traditional property sector to post a pricing increase that month.
The July activity builds on a stronger first half of the year. U.S. office sales reached $40 billion during the first six months of 2026, up 14.1% from the same period in 2025.
Buyers Are Returning to City Centers and Suburbs
Sales growth was particularly strong in central business districts, where office transaction volume jumped 46% in July. Suburban office sales rose 26%, with portfolio transactions, including medical office deals, driving much of that activity.
Overall commercial real estate sales were largely unchanged, falling 1% year over year to $36.3 billion in July. That makes the growth in office transactions stand out even more.
Leasing Recovery Is Helping
The increase in sales comes as office vacancy rates have begun falling in more than half of major U.S. markets.
Artificial intelligence is helping drive demand in major markets such as New York and San Francisco, where companies tied to the AI boom are taking space. But improving occupancy is not limited to traditional technology hubs, suggesting the office recovery is beginning to spread across a wider range of markets.
