With regard to CRE markets, the best part of 2009 is that it's over. Of course, more challenges lie ahead in the form of economic uncertainty, skittish banks, and CRE deleveraging. Yet, we detect stirrings amidst the rubble of this CRE recession. At the market's bottom, the movement is subtle: e.g., there are changes in the velocity of decline, and transaction time shortens a bit. It's like gravity has kicked in and the feeling of market freefall has dissipated.

In the aggregate, small-cap real estate trends were still running negative through December. National rents declined from 0.49% (49 basis points) for shopping center and office markets, to 0.73% for the industrial sector. Furthermore, some regional markets are still getting hammered. Southwest industrial (-0.82% for the month, -10.23% during 2009) and West retail (-0. 84%, -9.30%) are two prime examples. But take a hard look at the latest National & Regional Trends Update report, and you'll find that aggregate trends are leveling out, some regions are posting rent gains, Days on Market is stabilizing, and a handful of metro markets are exceeding expectations.