One sign that the commercial real estate industry is nearing full recovery: record transaction volumes. Last year, transaction activity came roaring back, breaking new records in multifamily and industrial and showing strength in retail and office. Non-traditional assets have also been wildly popular this year as capital searches for opportunities.

Private equity has been a key contributor to this activity, and will likely continue to fuel transaction activity this year. These firms have transitioned their business plans into perpetual life vehicles, according to Cedrik Lachance, director of research at Green Street. "There is a lot of equity going into those vehicles, so undoubtedly it is creating activity. That activity is compounded by the debt availability, which remains significant at attractive prices," he tells GlobeSt.com.

From a valuation perspective, the move makes sense. "Investor will pay more for the fee generated from a perpetual vehicle than one that must be sold after five-to-seven years and then must be sold again," says Lachance, adding that REITs operate under a similar model.