December Sales Rise to Highest Level Since 2007

Investor demand for major markets' core assets, a sharp improvement in credit conditions and initial signs of a recovery in real estate fundamentals powered commercial property sales in 2010 above the $100 billion milestone in early December. Accelerating into the final weeks of the year, the preliminary tally of 2010 sales is more than double the 2009 total of $54.6 billion.

 Property sales nationally will exceed $20 billion in December alone, marking the most active month since 2007. Investment momentum was strong with fourth quarter volume expected to top $45 billion, 50% greater than the prior quarter and more than double year-ago levels. Moreover, cap rates fell by 40 to 50 basis points across all property types over the quarter. The rebound has been the most spectacular in the office sector, where cap rates have declined by more than 200 basis points over the year, and more property sales were recorded in Q4'10 than in all of 2009.