So to answer definitively the “What should I do now?” investment question previously posed, I say it’s time to hold with the caveat—sell anything sketchy or past its prime. I don’t think it’s a great time to buy and the always narrow development window is closing.

Well-located core properties in the leading 24-hour markets are too richly priced, but they are well leased and will throw off very solid income returns with values buoyed by consistently strong buyer interest. Recent jobs and GDP numbers suggest tenant demand could at least marginally strengthen, supporting modest rent growth. For owners, this is a sweet spot— you can sit back and collect your monthly revenue stream, while the time is right to lock in some long-term leases.

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