The office sector largely mirrors the trends for all property types discussed in the overview, although some of the trends are magnified. For example, the dollar volume of office property claimed by lenders far exceeds the acquisitions of any of the traditional investment groups and almost all of it remains on banks' books. This is consistent with our earlier analysis that lenders are holding office REO moreso than in any other property type.

The influence of cross-border and private REITs is also highlighted in the office sector as they are the largest net buyers of office property this year, each adding nearly $2.0 billion to their portfolios. By comparison, public REITs have added less than $1.0 billion to their office holdings this year.

The public REITs rival the private sector as the most active buyers in 2010 with $2.3 of acquisitions, but continuing disposition activity has limited the growth to their overall holdings. Financially pressured firms Maguire and iStar account for the majority of office dispositions by the public sector. Specialized REITS, whether focused on medical office, single tenant, or technology properties have been primarily responsible for the acquisition activity in the office sector, but the large traditional office REITs are also signaling greater activity ahead.

Data subject to future revision; based on properties & portfolios $5 mil and greater.
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