Uptick In Class A Office Sales May Portend Stronger Office Investment Activity

After surging sale prices caused them to fall a bit out of favor with investors, Class A office buildings may again set the pace for an improved outlook for investment sales through the end of the year.

The monthly sales volume of Class A office buildings began to edge down in November 2011 when the average price per square foot achieved a post Great Recession high of $263 per square foot. Monthly sales volume hit a nadir in May 2012, according to data from CoStar COMPs, as the robust price appreciation drove investors to seek out other property investment alternatives.

More recently, monthly volumes of Class A office sales have rebounded after average-per-square-foot prices fell to about $248 per square foot.

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