"You also have to remember that with apartments, we are talking about shelter," says Keith Misner, senior managing director in charge of Cushman & Wakefield's national multifamily business. "People need a place to live no matter where the economic cycle is at."

Misner also expects the levels of capital flow activity, which have been healthy in 2003, should continue to be strong in 2004. "In markets such as Florida, Southern California and the Mid-Atlantic region, including Washington, DC, Philadelphia and Delaware, condos are just as viable an option as renting," he points out.

The multifamily market remains a preferred investment sector as national sales volume was expected to be at least 15% higher in 2003 than 2002. Misner says that, because apartments are based on one-year leases, the multifamily owners can adjust to economic conditions faster than owners of other commercial property. With anticipated job growth, a primary demand factor for the demand for apartment units, the apartment sector will continue to see strong investor interest.