Moderate leverage investors should find it easier to securedeals now that there are tighter lending requirements in NorthAmerica and Europe, Gordon says. Investors using leverage between60% and 65% "can actually start winning bids again," he says. "Thefirst half of 2007, we were basically priced out of themarket…because of the high leverage and high prices being paid inthe market." Residential real estate has become overheated in theUS and other countries such as Spain, France and the United Kingdomwith concerns that Shanghai might become overheated as well.

However, one of the types of properties that investors should"overweight" is apartments in the US, which are considered "fairlysafe to ride out the US slowdown," Gordon tells GlobeSt.com. Thedemand for apartments should increase as people who might have beenbuying homes in the beginning of 2007 may now be looking forapartments as well as possibly people who have had their homesforeclosed, Gordon says. Niche markets such as healthcarefacilities, senior housing and student housing are alsorecommended.

In the US, LaSalle has the "most concern" for retail properties,"particularly higher end or mom and pop" retailers, he says.However, exports are expected to increase because of the weakdollar. LaSalle is remaining neutral with regards to office andindustrial, Gordon says. LaSalle is cautioning against industrialproperties such as distribution facilities for retail businesses,but believe the outlook is better for "more modern logistics"facilities, Gordon says. The office market will be "hot and cold"depending on the area. Still, the fundamentals in the US aregenerally healthy and are expected to reach "trend-level growth"again in 2009.