Properties worth $2.5 million and higher saw a 24% increase in sales volume to $294 in 2012, and that trend continued in 2013. The $72.8 billion in property trades closed in the first quarter was a 35% jump over the same period in 2012. In all, 16 markets saw triple-digit gains in Q1.

Yet according to most NAR commercial members, 85% of their clients—usually small businesses—conduct transactions on properties under $2 million. The funds for these deals typically come from private investors, along with local and regional banks, whereas buyers of larger, more expensive properties can also tap large institutions, banks, agencies and the CMBS market.

“Despite the improvement for major commercial properties, 52% of Realtors^® report they had a commercial transaction fail in the past year due to a lack of financing,” Yun reveals. “In addition, 42 percent of respondents said clients failed to complete a refinancing. Credit for small business remains unnecessarily tight.”

CMBS grew its market share last year, accounting for 22% of loans made for commercial properties. The agencies' share was a similar amount, followed by national banks, insurance companies and regional banks. NAR commercial members point to new and proposed US legislative and regulatory initiatives, as well as regulatory uncertainty for financial institutions, as reasons behind the lack of capital for smaller properties.

In terms of projections for fundamentals, the “Outlook” report calls for a decline in office vacancies from a projected 15.7% in this year's second quarter to 15.6% in the second quarter of 2014. Not surprisingly, the lowest vacancies in Q2 were in Washington, DC (9.4%) and New York City (9.9%). Those for followed by Little Rock, AR (12%) and Birmingham, AL (12.3%). Net absorption will probably total 31.7 million square feet this year and 42.0 million in 2014. And office rents should rise 2.6% this year and 2.8% the next.

Industrial vacancy rates should fall by 50 basis points between midyear 2013 and midyear 2014 to 8.9%. Areas with the lowest vacancy today are Orange County, CA (3.9%), Los Angeles (4.1% and Miami (5.8%). Rents are forecast to rise 2.4% and 2.6$ in 2013 and 2014, respectively, with 107.1 million square feet and 100.3 million in absorption.

The vacancy for shop space should come close to hitting the single digits, with a 0.3% dip to 10.2% by midyear 2014. That's expected to aid in a rent increase of 1.4% this year and 2.2% next, with respective absorption levels of 12.5 million and 17.4 million square feet. Notably, there's a huge gap between vacancy in the top markets and the US average. San Francisco's retail space is 3.6% vacant; followed by Fairfield County, CT, at 4.1%; and Long Island, NY and Orange County, CA, with 5.3% each.

Though it'll probably see its vacancy rise from 3.9% in Q2 2012 to 4.1% over the course of this year, rental apartments will take the top spot for occupancy. The low vacancy will also allow landlords to push up rents, particularly in markets with the lowest availability—New Haven, CT, (20); New York City (2.2%); and Minneapolis and San Diego, each at 2.3%.

Average rents for multifamily are expected to increase 4.6% in both this year and next. Multifamily net absorption is expected to total 276,300 units in 2013 and 243,800 in 2014.