**Office Lending and Sales Volume on the Rise Year-Over-Year**
As the office sector shows signs of improvement, loan originations on office properties are on track to exceed last year’s total, according to a recent report from Avison Young. In the first quarter of 2025 alone, approximately $15.7 billion in office loans were originated. This follows $41 billion in total originations throughout 2024 and $44 billion in 2023. Additionally, office property sales reached $7.8 billion in Q1 2025, representing a 9.7% increase compared to the same period last year.
“Office fundamentals are showing signs of gradual recovery as both the number of office loan originations and the dollar amounts are on the upswing,” said Danny Mangru, U.S. Office Lead for Market Intelligence at Avison Young.
Mangru further highlighted the growing confidence in the sector: “In Q1 2025, we had six loans in excess of $500 million and four loans exceeding $1 billion – that’s more large-scale loans than we had throughout all of 2024. This lending activity demonstrates the renewed strength of the office market, particularly in gateway markets such as New York City.”
These figures point toward increasing investor and lender confidence in the office market, which has faced significant challenges in recent years due to changing work patterns and economic uncertainty.
