The projection is based on low vacancy rates for major property classes, rising rents and a relatively controlled rate of construction. Even in the event of a recession, real estate should not be negatively impacted, according to Jonathan D. Miller, a principal at Lend Lease and author of the report, Emerging Trends in Real Estate 2001. Those responding to the survey foresee returns of 11% in 2001 for private real estate investments and 12% for REITs.

The report also identified cities that offer the best opportunities for investment based on their planning, technology infrastructure and appeal as places to work and live. Topping the list are San Francisco, New York, Boston, Los Angeles, Washington, DC and Seattle.