The consensus among respondents is that the last 15 years ofvolatility in the real estate market has come to an end, with twoexceptions: limited service hotels and power centers. So-called"24-hour cities" such as New York, Boston and San Francisco offerthe greatest opportunities owing to their robust economies, strongdemand for space, high rents, low vacancy rates and barriers to newconstruction. Also regarded favorably are "subcities," areas thatare turning into 24-hour markets. They include the Buckheadneighborhood of Atlanta; Reston, VA; Bethesda, MD; Bellevue WA; andWalnut Creek, CA.

Cities considered less attractive to investors are Detroit, St.Louis, Dallas-Ft.Worth and Houston, so-called "nine-to-fivemarkets," where lack of development constraints pose risks. Themost favored property types for investment are Downtown offices,apartments and industrial facilities, with full-service hotels andfortress malls rated a "hold," but not a sector worth adding to aportfolio.