Nationwide, commercial property sales volumes increased by 80 percent in 2010 compared with the prior year, according to a report last week by CB Richard Ellis/Hubbell Commercial’s (CBRE) Iowa Private Client Group.

“One of the dramatic changes over 2009 was the increased availability of debt capital,” said Linda Gibbs of the Iowa Private Client Group, thanks to an influx of fresh capital from agencies such as Fannie Mae and Freddie Mac, which is helping the multifamily investment market.

“Apartments will continue to outrank all other property sectors,” said Tim Sharpe of the Iowa Private Client Group. “This is due to the favorable demographics and the housing bust, which should increase renter demand.”

The Des Moines area’s multifamily vacancy rate fell to 5.5 percent at the beginning of the year from 8 percent in January 2010, according to CBRE’s 2011 Apartment Survey, which was compiled by Commercial Appraisers of Iowa Inc.

Citing Real Capital Analytics Inc., Gibbs said capitalization rates on multifamily properties in Midwest tertiary markets increased by 1.2 percent percentage points in 2010 from 2009, as cap rates in major U.S. markets fell by 0.4 percentage point.

“In the Midwest tertiary market, which includes Des Moines, we did not see the same decrease in cap rates as in the national market,” Gibbs said. “As a matter of fact, they increased across the board for all property types.”

Nationally, multifamily property prices rose to $106,000 per unit in 2010, from $85,300 per unit in 2009. Locally, values fell by $2,450, to $34,800 per unit. In 2008, the average price per unit was $47,700.

Though a local turnaround may take longer, Gibbs said, investors are expected to find such fierce competition in larger regions that some may take a harder look at secondary and tertiary markets as the economy recovers.

“Overall, the commercial real estate fundamentals are improving for investment sales,” Gibbs said in an interview. “Nationally, sales were up significantly over last year. But we’re not seeing that here yet. We probably won’t feel that effect until next year.”