Second-hand real estate is finally dealing a hot hand. After years of prophecies that vintage real estate investments would become a brisk trade, the secondary market for global real estate closed an estimated $4.8 billion in transactions during 2014. That tally, compiled by Landmark Partners, is the sixth consecutive year of record transaction volume — but the 2014 run-up over 2013 was a whopping $1.1 billion.

The primary driver of the escalation: The net asset value of outstanding real estate investments has expanded rapidly during the past five to seven years. Consider that the formation of new real estate funds exploded from 2004 to 2008, and it is those more seasoned funds that are getting bought on the secondary market.

That said, the secondary market is not subsisting on the growth of net asset value alone. Also driving the market is the need among many large investors, such as pension funds and foundations, to reduce the number of managers handling their real