WESTPORT, CT-2014 is likely to be a strong year for the commercial real estate debt and equity markets, in terms of deal volume and investor yields relative to many other asset classes. It may also be a pivotal year, when investors, lenders and underwriters reveal how well we have learned the lessons of the past.

Many factors contributed to the global economic crisis five years ago, but an important element was the abandonment of sensible lending standards in home mortgages and, to a lesser extent, commercial loans. As competition for deals intensified, investors accepted lower yields for higher and higher levels of risk. Somewhere along the line, the market passed from prudent investment to short-sighted opportunism. But when exactly was that line crossed? And more important, will we recognize it when we see it again?

Commercial Real Estate markets are improving and outperforming many other asset classes. Investors from around the world are looking at US real estate markets, including both equity and debt opportunities across an expanding range of property types and geographies. Property performance measures such as occupancy and average rental rates are moving in the right direction in most markets, although net absorption nationally has been below historical averages.