DW: Texas has become more interesting for us lately, especially Houston and Austin, for a couple of reasons. First, it's a really good economic growth story; particularly in Austin and Houston. And second, the capital we've been working with has been core-focused in investment capital. They've been active in principal markets, but over the last year, are seeking to take additional risk in terms of broadening their range of markets as well as asset level. Houston and Austin fit into that scope.

GS: But core-type assets are still important to your clients?

DW: Well, we're initially looking at assets presenting core to core-plus levels of risk. This is important, particularly for off-shore investors as they become familiar with markets they haven't become engaged with in the past. So we're looking at better assets within submarkets, and better submarkets within the MSAs. I'd anticipate that, after we make investments in these markets, that familiarity will allow us to take on additional risk, whether value-add or development. But the focus continues to be core, relatively well-leased assets.

GS: But there's a lot of competition for these assets, especially in Houston.

DW: There's no question there's a lot of competition. There's a lot of global capital trying to find better yields that are available either domestically or within the bond marketplace. Real estate has become a more stable asset class for global investors and the United States has become a favorite investment location. It has a relatively consistent economic recovery, compared to other economies and offers a more mature, more understandable marketplace than some of the emerging marketplaces. Clearly, this leads to a high level of competition for better assets.

GS: How does Metzler handle this trend?

DW: We're selective about what assets we'll pursue. We don't have a shotgun approach. We concentrate on deals that make sense and have a good relationship with brokers across the U.S. who are facilitating these transactions. We also have great relationships with institutional owners who bring assets to market. We also work with our clients to make sure they have full participation in the acquisition process. We don't win every deal, but are well-positioned to win a good share of them.

GS: Speaking of deals, what do you have in the pipeline?

DW: Nothing I can talk about this point, but we're looking at some interesting opportunities in Austin. The broad range of our overall investment dollars, nationwide, in 2013 will be from $500 million to $1 billion.