The top 10 cities offering the strongest fundamentals and lowest risk are Middlesex, NJ; Boston; Oakland, CA; Ventura, CA; New York City; Orange County; San Diego; Fresno, CA; Los Angeles; and Bergen-Passaic, NJ.

Locales with unattractive investment profiles are found in the Rust Belt and the South, especially Central and Northern Florida. Of the 75 cities studied, those that came in with the weakest fundamentals and highest risks were, beginning in last place, Jacksonville, FL; Oklahoma City, Buffalo, NY; Orlando; and Indianapolis.

Richard Gold, a principal of Lend Lease and head of equity research, notes that the firm has long considered 24-hour cities and their suburbs the best places for real estate investments, particularly multifamily housing. And, he believes that the demise of many high-tech firms does not mean trouble for all of California.