An article for the Financial Times highlighted data collected by Real Capital Analytics (RCA), which revealed the number of transactions completed in Spain fell by 90 per cent in the second quarter of 2012.
In addition, the total value of the deals dropped from €260 million (£203.9 million) in the three months from January to March to €67 million in the second quarter.
Director of market analysis at RCA Joseph Kelly told the news provider why investors are avoiding Spain's commercial property sector.
"Heightened risk aversion, particularly among cross-border institutional investors, has led to an almost complete collapse in southern European acquisitions," he stated.
According to the most recent Royal Institution of Chartered Surveyors European Commercial Property Survey, rental and capital value expectations for Spanish assets are in negative territory, while investment activity remains subdued.
However, there appears to be more interest in Spanish commercial real estate than in other south European markets, such as Italy and Greece, the research found.