The latest edition of the Real Estate Investment Outlook, a quarterly report produced by National Real Estate Investor, Retail Traffic and Marcus & Millichap Real Estate Investment Services, shows that sentiment took a huge leap forward in recent months across all property types.

Investor sentiment surged to a record level of 152 — a huge increase over the 119 rating achieved in third quarter. In fact, the most recent index rating tops the previous all-time high of 148 recorded in 2005.

The Investor Sentiment index takes into account investors’ views on anticipated changes in property values, as well as their plans to increase or decrease total real estate holdings in the coming year. The survey was conducted online between Nov. 11, 2010 and Jan. 11, 2011 and yielded 508 responses. It is up considerably from readings taken in mid-2010 and in late 2009.

The index results may sound too good to be true, particularly in light of the current market that remains fraught with uncertainties. Yet the fourth-quarter survey results signal a potential inflection point in the market and indicate investors are showing increasing confidence in commercial real estate even as they remain wary of potential pitfalls.

Click here to read the full report.

In November, National Real Estate Investor’s research unit and Marcus & Millichap e-mailed invitations to participate in an online survey to public and private investors and developers of commercial real estate. Recipients of the survey included Marcus & Millichap clients as well as subscribers of NREI and Retail Traffic selected from commercial real estate investor, pension fund, and developer business subscribers who provided their e-mail addresses. The majority of respondents are private investors (35%), developers (20%) and private partnerships (18%) with an average of $39.8 million invested in commercial real estate. REITs and institutional investors represent 5% of all respondents. The survey yielded 508 valid responses.