In recent years, a significant shift has occurred in the U.S. office real estate market, with companies that traditionally leased their office spaces now stepping up as commercial property buyers. Historically, owner-occupied office transactions accounted for a small fraction of office real estate sales. However, starting in 2022, this pattern began to change. By 2024, office occupiers accounted for nearly 30% of all acquisition volume, tripling the previous norm. This trend continued into the first quarter of 2025, with occupiers accounting for 20% of U.S. office space transactions, according to JLL commercial real estate data. This shift reflects a strategic move by companies to gain greater control over their real estate portfolio amid a distressed office property market.
The surge in occupier-led real estate acquisitions coincides with a challenging landscape for commercial real estate investors. More than $2.2 trillion in commercial real estate loans are set to mature by 2027, with office building loans making up 47% of all currently distressed CRE loans. This has led to an increase in lender-owned office property sales, deed-in-lieu of foreclosure transactions, and commercial real estate foreclosures, as distressed office assets continue to be a significant concern in the U.S. office sector. In this environment, companies with capital are taking advantage of discounted commercial properties that previously would have gone to institutional buyers.
For many businesses, buying office space offers greater control, long-term cost predictability, and the flexibility to customize office environments without depending on landlord-funded upgrades. This trend is especially evident in urban office markets where commercial property values have dropped, and real estate financing for institutional investors remains tight. As a result, companies are increasingly stepping in as buyers in the distressed commercial real estate market, reshaping the dynamics of office space
