A growing number of office tenants in the U.S. are shifting from leasing space to buying it outright. Spurred by declining property values, favorable lending terms, and the desire for long-term control, this trend is gaining traction across markets. According to JLL, owner-occupier deals made up 20% of all U.S. office sales in the first quarter of 2025, up from 15% in 2024. Before the pandemic, this number was typically under 8% per year.
“User acquisitions are expected to remain a major force in the office market through 2025,” said Mike McDonald, Senior Managing Director at JLL.
A standout example is Los Angeles County’s 2024 purchase of the Gas Company Tower. The building, once valued at $632 million, was acquired by the county for just $200 million (less than one-third of its former price). The building had been in receivership after a Brookfield-managed fund declined to refinance a $784 million loan tied to it. The county chose ownership as a cheaper, longer-term alternative to retrofitting outdated leased spaces.
“It would’ve cost the county $1,500 a foot and years to rebuild its outdated, seismically vulnerable office spaces,” said Carl Muhlstein, founder of advisory firm Muhlstein CRE. “Instead, they bought a tower for less than $200 a foot that needs some work.”
What’s Driving These Trends?
The report attributes the ownership shift to three major factors: falling sale prices, better understanding of long-term space needs, and access to lower-cost capital. Tenants often benefit from corporate lending rates and flexible financing tools, such as municipal bonds, which are not generally available to traditional investors.
Ownership also allows buyers to control costs, customize their spaces, and gain tax advantages. For example, property taxes are immediately reset to reflect lower post-pandemic purchase prices. And as owners, companies can depreciate customized buildouts over 35 years instead of five to 10, which improves balance sheet outcomes.
While this trend started with tech companies, newer buyers include governments, healthcare providers, and education institutions. In Reno, Nevada, over half of 2024’s office deals were small-scale owner-occupier purchases, often for medical and technical uses.
Selling to tenants can also help landlords minimize losses. “Selling to tenants is an avenue right now, because [tenants] know the property and are financially much stronger than the developer,” said Muhlstein.
Though user-buyers require more education and support, JLL expects this shift toward ownership to continue through 2025.
