The current record is 2004's $15.1 billion worth of buildings sold.
Observers note that low interest rates and an increased appetite for commercial property among institutional investors are the two main reasons for the surge in sales. Funds that previously allocated 3 percent to real estate have boosted these investments to 8 percent, says Paul Pariser, co-founder of Taconic Investment Partners.
Meanwhile, private investors are increasingly willing to take on more debt to make a property purchase than institutions are. For instance, most of the bidders for the Toy Center's connected buildings on Fifth Avenue were individuals based locally.
