The volume of retail property loans increased significantly in the fourth quarter of 2010, compared with the last three months of 2009, RetailTraffic reported.

According to the Mortgage Bankers Association (MBA), retail loan originations were up by 94 percent, an indication that the commercial real estate market is improving.

The MBA’s retail originations index climbed to 184 in the fourth quarter, up from a reading of 100 in the third quarter. The latest data broke a series of eight consecutive quarters during which that index was less than 100.

“Commercial and multifamily real estate markets continued to mend in the fourth quarter,” the MBA said in a report. “Continued stabilization of, and modest improvement in, the U.S. economy continues to filter through to demand for commercial space. The improved property fundamentals are helping buoy sentiment in the market, meaning more sales transactions and improved property pricing.”

For all property types, the MBA’s originations index reached 114 in the fourth quarter. The indexes by property type showed health care on top, followed by hotels, retail, industrial, multifamily and office. “Mortgage originations have increased with the transactions, and the amount of mortgage debt outstanding fell by the smallest amount in a year,” the MBA said in a report.

RetailTraffic said the average retail transaction in the fourth quarter was $18.9 million, the highest figure since the MBA began tracking the data in early 2004.