The year "ended only slightly better than it started," writesBarbara Byrne Denham, chief economist for Eastern Consolidated, inthe report. Preliminary estimates for '09 show a total for the yearof $5.5 billion, dropping nearly 77% from the $23.6 billion totalfor 2008 and nearly 92% from 2007's tally of $62.8 billion. Bycomparison, Manhattan commercial sales volume averaged $10 billionannually in 2001 and 2002.

Multifamily property sales in Manhattan reached $392 million inthe fourth quarter, Eastern Consolidated says. That's down from$410 million in the Q3 but well ahead of the Q1 and Q2 volumes of$195 million and $310 million, respectively. For non-multifamilycommercial sales, Q4 volume was $740 million, off from Q3's tallyof $1.1 billion but better than Q2's $650 million.

"Most in the industry are happy to see the year close, but onlya hint of optimism looms on the horizon," Denham writes. "Lendersare starting to sell some of their bad loans, generating hope fromthose eagerly awaiting the emergence of the distressed propertymarket, but these loans represent little more than a trickle. Manyare expecting the distressed market to grow imminently."