One question market watchers are asking is – will the record level of commercial investment transactions that occurred in 2005 continue unabated in 2006?

A total of $268 billion worth of investment-grade commercial real estate (properties valued at over $5.0 million) traded hands last year. This value represented an increase of 44% over transaction volume in 2004.

Not all sectors experienced the same increase in volume in 2005. Office properties accounted for the greatest transaction volume last year at $99.7 billion – a 34% increase over 2004 volumes. Almost $87 billion worth of multi-family properties sold – a significant number to condo converters. This transaction volume represented an increase of 72% over 2004. Industrial transaction volume was $34.5 billion – an increase of 65%. Retail transaction volume was $46.4 billion in 2005, which represented just a 16% increase over 2004.