As an indicator of burgeoning improvements in the office sector, loan originations on office properties are on pace to surpass last year’s tally, Avison Young said Thursday. Roughly $15.7 billion in office loans were originated in the first quarter of 2025, following $41 billion in all of 2024 and $44 billion in all of 2023. In addition, Q1 of this year saw $7.8 billion in sales of office properties, up 9.7% from the year-ago period.
“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, Market Intelligence at Avison Young.
He continued, “In Q1 2025, we had six loans in excess of $500 million and four loans hitting north of $1 billion – that’s more larger-scale loans than we had the entire year of 2024. This lending activity demonstrates the renewed strength of the office market, particularly in gateway markets such as New York City.”
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