Although they are generally optimistic, investors have differentstrategies on where to put their money in the months ahead. Somewill continue to acquire class A buildings in the top markets,while others will shift from investing in suburban office space toapartment buildings, the survey reports.

The boost in stock prices of REITs is expected to make them moreactive in the market next year, especially firms involved withoffice and industrial properties. Some REITs are even consideringbuying and developing buildings overseas despite the risks suchventures pose.

Recent increases in interest rates may have had an impact on thestock market, but they have been of little concern to the realestate community. Higher rates may have cut back construction insome suburban markets, but they have not deterred all-cash buyersof real estate such as pension funds and insurance companies.