With interest rates at record low levels, properties that can be purchased on an all-cash basis are commanding premium pricing, says Robert W. Miller, CBRE's senior vice president/Orlando.

"There have been a number of new buyers in the market from public, private and non-traditional sources," Miller says. "Demand by buyers is expected to remain very strong during 2003" because of a limited supply of properties for sale over the past two years and uncertainty in other investment vehicles, such as stocks and bonds. The CBRE executive also expects more sellers to surface this year.

"The combination of low interest rates and strong buyer demand has driven cap rates substantially lower as a result of the increased competition for those properties that are available for purchase," Miller says.