The Weekly Take from CBRE Shake It Off: Office investing is coming back
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Dec 8, 2025 Brandon Shorenstein, CEO of Shorenstein Investment Advisors, and Patrick Gilday, Vice Chairman at CBRE, dive into the rebounding office market. They discuss the emerging focus on cash flow and downside protection, while noting cash-on-cash yields reaching 8%-15%. The duo highlights the importance of prime assets in vibrant submarkets and the challenges of property conversions. With an emphasis on tenant priorities like wellness and experiential amenities, they paint a hopeful picture for office spaces as essential investments going forward.
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Office Has Come Off The Bottom
- Office investing hit bottom in 2024 and is rebounding with more competition and available debt.
- Buyers now see accretive financing and multiple debt quotes, signaling revived capital markets.
Real Yield Returns To Office
- Investors are finding strong positive leverage across recent transactions with high cash-on-cash yields.
- Shorenstein reported distributable yields often between 8% and 15% on purchases with accretive leverage.
Market Strength Varies By Quality
- Prime versus non-prime bifurcation drives vastly different vacancy outcomes in markets.
- About 80% of negative absorption since COVID occurred in roughly 10% of inventory, skewing headline data.