The report, which offers advice to sellers and buyers, suggests sellers put their properties on the market shortly and make sure they are priced reasonably. Cap rates are expected to move up "sharply," according to the report, and a 1% cap rate hike can mean a 7% value reduction.

Property owners with tenants that have five-year leases up for renewal this year whose rents were negotiated in an owner's market will want to dispose of these properties before the NOI falls to current market conditions, the report states.

The report also tells buyers that their best value will be found in properties that are partially leased. So buyers are advised to purchase at below-market prices and "ride the economy up." This does, however, require cash flow, it adds.