Office Real Estate Market Report 2025

The office real estate market size has grown strongly in recent years. It will grow from $1.97 trillion in 2024 to $2.1 trillion in 2025 at a compound annual growth rate (CAGR) of 6.5%. The growth observed during the historic period can be attributed to the increasing adoption of technology across sectors, the rising co-working culture, expanding government initiatives for smart cities, a growing startup ecosystem, and heightened interest from institutional investors.

The office real estate market size is expected to see strong growth in the next few years. It will grow to $2.69 trillion in 2029 at a compound annual growth rate (CAGR) of 6.3%. The growth projected for the forecast period can be linked to the wider adoption of hybrid work models, an increased emphasis on sustainable buildings, growing demand for flexible lease options, rising investments in smart office technologies, and the expansion of business outsourcing activities. Key trends expected during the forecast period include advancements in smart building technologies, development of green and energy-efficient offices, innovations in flexible workspace solutions, progress in AI-driven facility management, and the emergence of wellness-focused office designs.

The rise in white-collar employment is expected to drive growth in the office real estate market. White-collar employment refers to professional or administrative roles involving mental tasks typically performed in office environments rather than physical labor. This type of employment is increasing as businesses increasingly implement digital technologies, boosting demand for skilled professionals in fields such as IT, data analysis, and cybersecurity. Office real estate plays a crucial role by providing the physical infrastructure necessary for administrative, professional, and collaborative workspaces, which support productivity, team interaction, and access to business resources. For example, in June 2024, a report by CompTIA, a UK-based trade association, noted that tech employment in the United Kingdom reached 2,130,745 in 2023, marking a 3.4% increase from 2022. Therefore, the growing white-collar workforce is expected to propel expansion in the office real estate market.

Key players in the office real estate market are focusing on innovative solutions such as enterprise leasing platforms to improve tenant experience and optimize space usage, adapting to the changing needs of businesses in a hybrid work environment. Enterprise leasing platforms are digital tools that assist large organizations in efficiently managing, tracking, and optimizing commercial real estate leases across multiple office sites. For instance, in April 2025, Incuspaze, an India-based workspace solutions provider, launched FlexLeaze, a leasing platform designed for large and mid-sized companies. FlexLeaze offers fully customized office interiors along with operational leasing of infrastructure, warehousing, and machinery, eliminating the need for ownership. The service is designed to be tax-efficient and flexible, converting capital expenditures into operational expenses, which helps businesses reduce upfront costs and concentrate on growth. Offering an end-to-end service that covers design, construction, compliance, and maintenance, FlexLeaze delivers ready-to-use premium workspaces while Incuspaze manages all workspace-related responsibilities.

In March 2023, Conning Holdings Limited, a US-based investment management firm, acquired Pearlmark Investment Company L.L.C. for an undisclosed sum. This acquisition aims to strategically expand Conning’s investment platform by incorporating Pearlmark’s expertise in commercial real estate debt and equity, thereby enhancing Conning’s ability to provide a wider range of real estate investment solutions to institutional clients while supporting Pearlmark’s continued growth and operational autonomy. Pearlmark Investment Company, LLC, is a US-based commercial real estate investment firm with office real estate investments as part of its diversified portfolio.

Major players in the office real estate market are International Business Machines Corporation, CBRE Group Inc., Jones Lang LaSalle Incorporated, Skanska AB, Mitsubishi Estate Co Ltd., Cushman & Wakefield plc, Hines Interests Limited, Colliers International Group Inc., Unibail Rodamco Westfield SE, Boston Properties Inc., Savills plc, Vornado Realty Trust, Brookfield Asset Management Ltd., Tishman Speyer Properties LP, PGIM Inc., Knight Frank LLP, Gecina SA, DLF Limited, SL Green Realty Corp, Dexus Property Group, Derwent London plc, Panchshil Realty Private Limited, Prestige Estates Projects Limited.

North America was the largest region in the office real estate market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in office real estate report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the office real estate market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the professional services sector, particularly in legal, consulting, architectural, and engineering domains. Higher costs for imported technology, software licenses, office equipment, and digital infrastructure have raised operational expenses for firms reliant on global tools and platforms. International consulting projects are facing delays or cost overruns due to increased travel expenses and restricted access to foreign-sourced data and tools. Additionally, clients in manufacturing, construction, and logistics, heavily affected by tariffs are cutting back on outsourced services, squeezing demand for professional expertise. As a result, service providers are reevaluating pricing structures, expanding domestic supplier relationships, and investing in AI-driven solutions to sustain profitability and client engagement amid economic uncertainty.

Office real estate refers to commercial properties specifically designed and utilized for business activities, including administrative tasks, professional services, and corporate operations. These properties encompass office buildings, business parks, and coworking spaces that offer workspace for companies, government agencies, and other organizations. Office real estate varies in quality and location, ranging from premium downtown high-rises to suburban office complexes, and is typically leased or owned to meet the daily operational needs of tenants.

The main types of office real estate properties are corporate offices and non-corporate offices. A corporate office serves as the primary administrative hub of a company, where strategic decisions are made, corporate policies are formulated, and executive management teams operate. Rental options include traditional long-term leases and flexible lease arrangements, while building classifications include grade A, grade B, and grade C. These properties serve a diverse range of end users, such as information technology, banking, finance, and insurance (BFSI), business consulting and professional services, among others.

The office real estate market research report is one of a series of new reports that provides office real estate market statistics, including office real estate industry global market size, regional shares, competitors with an office real estate market share, detailed office real estate market segments, market trends and opportunities, and any further data you may need to thrive in the office real estate industry. This office real estate market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The office real estate market includes revenues earned by entities by providing services such as leasing and rental services, property management, broking services, space planning and interior design, and facility management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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