Right now is almost a perfect storm, according to Ric Russell, a managing partner at Cassidy Turley. In the Bay area, for example, Russell says there are good fundamentals, “so why wouldn’t cap rates compress.” His guess is that “we will probably see that stay for the next six to 12 months. I think we will see much better transaction volume.”

Kitty Wallace, an executive vice president at Colliers International, agreed that “we will see a lot more volume in the fourth quarter and have a better next year.” Part of that increased deal volume is dependent on which market you are looking at, according to Wallace. For example, the numbers in Southern California aren’t back to 2006 and 2007 levels; however she noted that the company’s Florida office is the best it has ever been in terms of deal volume. “Some of those pockets that are a bit more distressed are a little more on fire.”

“At what cap rate would you sell a B/B+ property in a ‘secondary’ market?” asked Kirsh, revealing that 39% of respondents said they would at 7%. But according to David Young, a managing director of Jones Lang LaSalle, it doesn’t appear that cap rates really matter. “I think it is more of a replacement cost, growth going forward etc.,” he said. “I am not sure cap rates matter in the grand scheme of things today in the snapshot to buy properties.”

What is important, according to Dean Zander, a senior partner at Hendricks & Partners, is that in the last 12 to 18 months, there has been more price discovery, “which we only had a fraction of 12 months ago,” he said. “I think we can now see where the markets are and where the demand is.”

According to Young, there are more and more investors coming out and buying deals…”I mean, what else are you going to do…everyone is getting bored.” Like Wallace, Young predicted that “volume will increase this year and next year, cap rates will stay compressed, and this is a great time to invest…I think a lot of guys will step up this year and next.”

Earlier in the day, the “Property Management Takes Center Stage” panel—moderated by Chad Sanderson, senior vice president of the Bascom Group—discussed the need to master the “new normal,” and encouraged owners to embrace the new technology out there.

“I think there has been a sea change in the way we have approached the markets,” said Brad Cribbins, senior vice president of Alliance Residential Co. He explained that residents seem to be looking for a more cost effective monthly rate, which has allowed his company to drive more income to the bottom line while still maintaining occupancies. “We are returning to giving that discounting upfront,” he said.

Mike Dow, division president of Riverstone Residential Group, is a big believer in rent optimization. “The shift has gone from increasing rents two years ago and three years ago to managing cash flow and keeping the occupancy high.”

Brad Sester, vice president of Yardi Systems Inc., too is hearing that the rent optimization programs are working quite well, especially in an up market. However, panelists agreed that there still has to be a human factor involved, especially in the down cycles.

“When this whole thing started in 2008, the system recognized the downturn and responded with moderate price decreases, and because we responded sooner with the system with people involved to evaluate what the system was doing, we were able to maintain a higher level of occupancy,” said Leslie Turner, vice president of product management at RealPage Inc. “We were then in a much better position in 2010 to respond and start raising the rent. We saw good results.” Turner adds that price optimization isn’t nirvana. “Don’t just think you set this thing up and let it run and go. It is a tool.