The commercial sector has been a bright spot for the real estate industry in the years following the housing market collapse, and it's showing no signs of slowing down.
So far this year, transactions on small commercial spaces surged to the highest rate experienced since 2008, according to a report from Bloomberg. These properties have average sales prices of less than $5 million.
The sales volume smaller commercial properties spiked 41 percent in May from a year earlier. Meanwhile, of the country's 122 largest metropolitan areas, 88 reported annual gains.
Although the commercial sales rate has gained momentum, property data indicates that prices are still weak as a result of distressed commercial spaces, the report said. Many experts claim this is an issue that needs to be addressed if the sector is to make a full recovery.
"It's making the market more liquid, more transparent and if we get rid of this distress we'll have a firmer footing," Boxwood Means principal and co-founder Randy Fuchs told the news source.