US Office REIT Metrics: 2016–2025

Overview

US office REIT metrics provide transparent and detailed chronological information on the current office real estate cycle. Starting in 2016, the office sector was a stable income producer: national occupancy stood above 90%, asking rents rose 2 to 3% a year, and the public office REITs in the CRE42 composite traded near a 20x gross NOI multiple. By 2025 the sector had absorbed two shocks in sequence: a demand regime change, as remote and hybrid work cut office utilization from 2020 onward, and the 2022 inflation and interest rate spike that repriced every long-duration asset. National occupancy fell roughly 430 basis points, private office values roughly halved, and new construction fell toward zero.

Combining the CRE42 Office REIT composite (stabilized-TEV-weighted) with inflation statistics from the US government and market data from CoStar and Green Street, we are able to trace clearly the office cycle's distinct path: a demand regime change followed by a rate shock, and a correction that has been deep and slow to turn.