Investment in U.S. office properties fell 68% in Q1 2023, to $10.7B, the lowest level since 2010, as property markets faced a deep freeze. Office sales fell fastest in the face of rising interest rates, shrunken office demand, and uncertainty about the economy. It comes after a year of challenges and a sharp drop-off in deal volumes more rapid than during the global financial crisis (GFC). Blackstone is also turning away from the sector, and is focusing instead on rental housing, data centers, and life sciences properties.
