The investor survey, Real Estate Outlook, by C&W notes thatdevelopment is up across the board in commercial real estate, butthat apartments continue to lead the charge because of historicallylow vacancies. The survey questioned developers, insurancecompanies, investment advisors and REITs around the country,studying the industry market by market and property type byproperty type. It reveals that the REIT market rebound has enabledthe earmarking of funds raised to go to development.

Accompanying the survey's release were official statements fromC&W executives involved in the project. "Despite recentInterest rate increases, strong real estate demand and rent growthhas stimulated construction activity," says Bruce Kellogg, MAI,managing director of C&W's valuation advisory services andeditor of the survey. "The requirements for greater tenantcommitments prior to obtaining financing from lenders tend tominimize the risks associated with new development. These factorswill limit any rampant development and acquisition schemes thatcould potentially create an imbalance of supply and demand invarious markets."

At the same time, Lend Lease Real Estate Investments Inc. isaggressively pursuing multifamily properties. It is currently inthe midst of almost $1.4 billion in new investments and is planninganother $1 billion. Of the $1.4 billion in play, $911 million of itis for core acquisitions, $215 million is in value-addedinvestments and $252 million is in development. The company is alsoseeking joint venture development opportunities to piggyback withthe 39 properties, comprising 12,300 units, now completed or undercontract.