Though lifestyle centers in upscale suburban markets will continue to do well, slowing retail sales should take its toll even as new projects open, respondents say. "The only real doubt [respondents expressed] was about retail. When will the consumer stop spending?," asked Stephen Blank, senior resident fellow of Washington, DC-based ULI, in a panel discussing the survey results. "Unemployment is low, but so are wage increases."

Fortress malls and solidly anchored neighborhood centers remain strong investments. But the retail development pipeline is full just as the consumer is beginning to wobble, Blank added.

Even though real estate returns are past their peak and will revert to historical averages, investment remains solid. Capital will continue to pour into real estate, but financing standards will become more stringent. Apartments, particularly for mid-incomes tops the list for investment return potential, as higher mortgage rates and housing costs shut entry-level buyers out of the market. Hotels also are expected to do well, as business travel increases and Baby Boomers travel more for leisure. Office and industrial space also will remain strong.