Land transactions picked up pace in 2009, but investors continue to remain cautious about jumping into the market with such a large supply of empty commercial space, according to research firm Applied Analysis.

Sales increased for the third consecutive quarter with 531 acres sold in the fourth quarter of 2009, up 28 percent over the third quarter, the firm reported.

Overall, sales rose 33 percent in 2009 with 1,600 acres changing hands. Despite the increase, that’s only one-tenth of the amount reported during the peak of the market in 2004, said Applied Analysis Principal Brian Gordon.

The land transactions reported in the fourth quarter of 2009 are the most since the second quarter of 2007. The reason is prices have become more realistic and property owners could no longer afford to hold onto their properties, Gordon said.

Lender foreclosures accounted for 66 percent of the transactions while more traditional sales accounted for 28 percent, he said.

The price paid per acre in the fourth quarter for land outside the Las Vegas Strip corridor was $241,287, up from $225,999 in the third quarter.

For 2009, the price per acre paid was $241,287, down $478,544 in 2008. Land sold for $784,150 an acre in 2007.

The price per acre varies by location and what is allowed to be built on it.

In the fourth quarter, the largest transaction was 62.6 acres at the northwest corner of Russell Road and I-15 behind Mandalay Bay. The vacant resort property was sold for $40 million or $639,182 per acre.

The transactions don’t include a first-quarter sale of $2.15 acres at Harmon Avenue and Las Vegas Boulevard bought by developer Brett Torino for $25 million.

Gordon said the overbuilding in the commercial market has lessened the demand for raw land throughout the valley. Las Vegas has more than 30 million square feet of vacant commercial and industrial space and 35,000 surplus homes on the market as well.

Prices should continue to fall for that reason and not reverse course anytime soon, Gordon said. Undeveloped land will be priced at levels that account for holding it for at least three to five years, he said.