"Real estate lenders have plenty of money to lend and are actively seeking deals," the report notes.

But underwriting remains tight, with lenders scrutinizing borrowers on every detail.

"This cautious approach to lending is a healthy indicator," Fuller notes.

In addition, the unemployment rate, currently at 5% in the metro area, continues to drop.

"The large layoffs are over with most companies tightening their belts and becoming more efficient," Fuller notes.

However, concerns over a tenant's credit plays a big role in investors' decision.

Grocery-anchored centers built since 1997 are the most sought after, with capitalization rates ranging from 9% to 9.3%, the report says. These are not "value-added" deals, but are purchased solely for their return on investment.

"Equity investors, both institutional and private, have driven prices up and yields down," according to the report.

Fuller thinks there will be some excellent investment opportunities in the Denver area over the next 12 months, especially for long-term investors willing to take a minimal return in the short-term.