Investor demand for real estate assets remains strong, despite the downturn in the economy. According to CB Richard Ellis' latest Investment Research Quarterly, "As individuals and institutions continue to seek income-oriented vehicles, they are becoming better educated about REITs' long-term track record. Capital flows into REITs will pick up (in 2004) and they will return as major buyers of stabilized properties."

Capital Sources Outlook for Real Estate
	Current	Late 2003/Early 2004	Late 2004/2005+
REITs	Revived activity.	Pullback.	Income emphasis + Increased awareness = Continued capital flows.
Europeans	Intense but highly focused activitiy.	Pullback.	Competitive U.S. yields + Firming dollar = Continued capital flows.
U.S. Institutions	Increased activity overcoming "denominator effect."	Selective and deliberate.	Liability funding needs + Backward looking models + "Denominator effect" removal = Increased Allocations.
Individuals	Buoyant activity driven by leveraged returns.	Active.	Increased interest rates = Withdrawal of "enterprising" players.
OVERALL	Liquid but bifurcated market.	Temporarily reduced competition.	Active, increasingly institutional market.
Source: CB Richard Elllis Investors LLC