The past few years have certainly been interesting. The optimism that abounded during the first half of each year was quickly dashed by mid-summer, as job growth slowed and other economic indicators posted disappointing or alarming results. At the same time, prices in most markets are rising and cap rates are dipping as investors flock to the safety of real estate. For many in the market, it's been a tough time to make decisions.

By now, however, institutional players have come to terms with the reality that the current situation is one that's here to stay. It may not be ideal, but for better or worse, this is what recovery looks like and—like it or not—capital must be put into play and—believe it or not—there are some decent opportunities out there. At least, that's what most of the conversation centered around during the 16th Annual Transwestern/Real Estate Forum Institutional Investor Symposium, held this past June at the Top of the Hay at the Hay Adams Hotel (check out the view) in Washington, DC. The event brought together decisionmakers from some of the nation's top institutions for a frank and lively discussion of the environment for business. Here's some of what they had to say.

MICHAEL DESIATO: At the start of this year, most people in the real estate industry were fairly content. That seems to have dissipated very quickly. Can we still call this a recovery? And if so, do you think there's any space demand coming on board?