After a dismal couple of years, sales activity picked up significantly in 2010, with volume surging to 2007 levels at year-end. The pace of closings didn’t continue as earnestly into 2011, though investment levels look promising this year—in fact, January 2011 saw a 50% increase over the prior year, according to Real Capital Analytics.

There are several drivers behind the bullish transactions market, investor appetite and lack of alternative investment opportunities among the primary ones. Investors of all stripes, particularly institutional players and private investors, are sick of waiting it out and have allocated billions of dollars to real estate. Capital-flush public REITs have also stepped up to the negotiating table and are scouring the market for deals.

Of course, everyone’s going after the same thing: high-quality product in top-tier markets. Given the sectors’ positive prospects, multifamily assets and hotels have been highly sought after over the past several quarters. But lately, sales of office and retail properties have seen a pickup in activity as well.