Multifamily --Gains in rental rates should continue and vacancies should decline thanks to demand, encouraging investor interest and raising values for the next several years. The ability of multifamily properties to withstand economic difficulties will enable this sector to outperform the other property types covered by the study.

Warehouses--Over the next five years, most of the markets will experience changes in vacancy rates of less than 2% and, as time goes on, will see a modest shift in the supply/demand balance that will result in slight increases in vacancy rates. Market fundamentals should remain positive, nonetheless.

Office Space--Like warehouses, the demand for offices is expected to contract somewhat over the next several years. New supply coming to market and declining growth in employment will lead to a rise in vacancy rates. One consequence of this will be slightly higher capitalization rates.Retail--The demand for stores is expected to slip significantly as the economy moderates, causing the national retail market to contract. The growth of income and property values are projected to sag as vacancies escalate and rental growth declines.

The report, Real Estate Value Cycles, can be purchased for $225 (paper) or downloaded for $150 at www.pwcreval.com.