DENVER-Private, direct real estate investments and publiclylisted property companies represent the best investment prospectsin 2013. So says Emerging Trends, the annual study conductedjointly by the Urban Land Institute (which isholding its annual fall conference here) and PwC.The press got a peek into the report Tuesday morning, and theprospects are good for investment, despite the looming risk of theeconomy missing a step.

As GlobeSt.com reported earlier, thetone of Wednesday morning’s press briefing was upbeat with anasterisk, acknowledging the ongoing threat of the so-called fiscalcliff and European woes, while emphasizing the slow but relentlesseconomic recovery. “The enduring low-gear real estate recoveryshould advance further in 2013,” the report summarizes.

Investment-grade bonds rated only fair in the comparison, alongwith CMBS. GlobeSt blogger and principal “Trends” authorJonathan Miller referenced the chasefor yield as one of the prime drivers of the market next year. “Caprates have plunged into uncomfortable territory in A markets,” henoted. That will continue to push investors into secondary andtertiary cities.