"The last six months of the year brought buyers' and sellers' expectations closer together, resulting in a higher volume of transactions," says Bill Argeropoulos, VP and director of research for Avison Young in Canada.

During the second half, there were $2.8 billion of transactions completed, this is compared to $3.5 billion traded in the last two quarters of 2008. For the slower first half, investment volume totaled $1.4 billion, less than half of 2008's $3.6 billion. The $4.2 billion of assets traded in 2009 is a 60% drop from the 2007 peak of $10 billion.

"Despite the less than stellar results, buyers and sellers are beginning to find common ground, as almost $1 billion worth of properties closed in the last month of 2009. This accelerated activity provides strong guidance for a better year in 2010," Argeropoulos says.

The industrial market fared the best in 2009, accounting for 50% of the transactions in the second half of 2009. "Industrial buildings were the most traded investment of the year and the only asset to crack the billion-dollar mark ($1.1 billion), capturing just over one-quarter (27%) of the total investment volume in 2009," Argeropoulos says.

The office sector experienced a 55% decline from 2008's figures, sealing $990 million in office deals for the year. The retail market fell 41% to $600 million. Multi-family declined 46% from 2008's total of $898 million to $417 for 2009. Land sales fell only 28% in 2009, totaling $975 million for 12-month period.