Investor optimism strengthened as recently enacted tax laws and economic durability sustain market confidence. And, the commercial real estate outlook remains positive. Marcus & Millichap survey responses indicate that approximately two-thirds of investors plan to increase commercial real estate investment activity in the next 12 months. More than 70% of respondents believe the new tax law will have a favorable impact on commercial real estate. Additionally, investors expect increased investment capital to enter the market as a result of tax reform. Downside risks at the top of investors’ minds include the potential for rising interest rates and increased inflation.—Lisa Brown