Within that is a trend where buildings are being legally split into their individual components, say office and retail, and sold off to specialist investors. McCabe says the practice can maximize a building's value because of retail properties' traditionally lower stabilized cap rates. The higher prices also are a result of buyers, in the face of intense competition for assets, paying for future rent growth, he says.

"Investment demand has been aided by large fund allocations into the real estate sector, and the belief massive construction cost inflation has permanently raised the ceiling for future building incomes," McCabe says. "This inflation concern is also starting to be replaced by the stronger notion of the need to purchase hard assets for 'capital preservation'."

Consequently, McCabe tells GlobeSt.com the real estate market is expected to remain strong throughout the remainder of 2007. "We are seeing huge investment continuing to come out of all segments, tremendous offshore and domestic investment," he says. "As an unknown, next year will be interesting."

More than half of the sales, 58 buildings, traded for more than $25 million, which McCabe says "illustrates the rise in property values during the past few years, as well as how this can encourage ownership turnover." The quantity and sales volume of less expensive properties, valued below $25 million, remained at approximately the same level as during 2006's first or second half, he says.