NEW YORK CITY—Commercial property values are likely to continuetrending upward as the five major food groups continue shiftingfrom recovery to expansion mode. That's the key takeaway fromIntegra Realty Resources' "Mid-Year Viewpoint2014," a series of reports on both the national perspective and 66local markets.

Thus far in 2014, industrial has experienced the strongestimproved prospects of any property sector, according to IRR.Nationally, 97% of industrial markets are now reported to be in therecovery or expansion phase of the real estate market cycle, while51% are observed to be in an expansionary cycle. That's up sharplyfrom 22% in this phase just six months earlier.

Enjoying a run similar to that of industrial, nearly 94% of allurban multifamily properties are in the expansion phase of themarket cycle, and IRR predicts that this situation should continuenationally for at least the balance of 2014. That being said, thenational report notes that the lowest cap rates achieved thus farthis year have been in suburban multifamily, where they've gone aslow as 3.7%. However, their urban counterparts still achieved thehighest average at 5.6%, due to a smaller fluctuation between highand low caps.