The determination is a result of a survey of more than 1,000high-net worth individuals, real estate developers, private equitygroups, institutional investment advisers and opportunity fundsthat had been polled by Denver-based EquityCity.com. EquityCity isa neutral exchange designed to streamline and facilitate raisingequity to fund real estate transactions.

Direct investment of private equity capital in commercial realestate properties is expected to increase over the next 12 months,according to the EquityCity survey. Some 40% of the respondentshave indicated a more bullish outlook while another 40% are stayingtheir present course. About half of the investors intend toincrease their allocations of capital to direct real estateinvestment in the coming year, with 40% planning to maintaincurrent real estate allocations. The remaining 10% of the sectorpolled will cut back on investments.

EquityCity President Matthew Blumberg says the survey reflects asteady capital flow for for well-sponsored and structured realestate investments and developers over the next year. "While thisreal estate upmarket has enjoyed a long run, our investor membersare clearly still performing detailed due diligence on specificmarkets and opportunities," says Blumberg. "From the real estateentrepreneur's perspective, the good news is that equity investorsare looking closely at rents, vacancies, absorption and newconstruction and, for the most part, like what they see enoughright now to want to put more money into the sector."