The largest declines in returns on commercial real estate investments may have passed, Reuters reported. But investors, eager to see their returns start to grow, may have to wait until 2011 to see that happen.

“The worst is behind us, because (values) won’t be dropping as fast,” said Serguei Chervachidze, a CB Richard Ellis Group Inc. Econometric Advisors (CBRE-EA) Capital Markets economist. “That translates into total returns as well.”

He told Reuters that the greatest declines most likely occurred in the third quarter of 2009.

CBRE-EA, which based its forecasts on the NCREIF Property Index, compiled by the National Council of Real Estate Investment Fiduciaries, predicts returns will remain in negative territory throughout 2010, before turning 3 percent to 11 percent positive next year.

Total returns, or net operating income plus the change of the value of a portfolio of property over a year, have seen double-digit percentage declines since peaking in late 2007.

Since that peak, total returns on U.S. Office properties have fallen 23 percent, total returns for warehouse and distribution centers have declined 21 percent and retail property returns are down 15 percent, according to the index. Apartment building returns are down 23 percent.

CBRE-EA estimates that values could ultimately fall 30 percent to 53 percent from their peak.