The market is being hampered by buyers who aren't willing toaccept historically low cap rates at a time when interest rates arerising, says Welsh, principal of the recently formed WelshCommercial Inc. On the other side, sellers want the low cap ratesand continue to hold out for high prices.

Still, the overall sales velocity should pick up in the secondhalf of the year, which will bring the total sales volume on parwith last year, he says. For example, he notes that fourmultifamily rental sales already have closed in July and August,compared with only five in the first six months of the year.

The report shows 38 retail properties sold this year for a priceof$155.12 per sf, for a total of $315.1 million. There were 19office sales at an average of $120.48 per sf for a total of $228.1million. The five apartment communities sold for an average of$53,527 per unit, for a total of $73.8 million, while 36 industrialproperties sold for an average of $64.26 per sf, for a total of$147.5 million.