Aitkenhead: CRE remains a relatively attractive asset class measured by returns in comparison to other major investment sectors (e.g., stocks, corporate/high yield bonds). The greatest challenges are broadening investor acceptance of the asset class—it seems to us to be underweighted in most investment portfolios—and maintaining self-discipline in the CRE market itself after a long benign period, which typically increases risk appetite and new development. To date, we think the CRE market has remained fairly disciplined and not indulged in overdevelopment of new properties. If the CRE market can maintain that discipline, we expect investor capital in search of yield to move into CRE from other sectors that offer lesser returns as investors find CRE as an attractive alternative-asset class.

GlobeSt.com: What new capital sources do you see coming over the horizon?

Aitkenhead: We see two broad trends here. Domestically, we see increased asset allocation to CRE by retail and institutional investors in pursuit of higher yields versus other asset classes. We think this will be more pronounced with retail investors as large asset managers seek to give retail investors greater access to CRE. Internationally, overseas exchanges are looking for US CRE and US dollar exposure. Whether it's the Israeli-bond market's appetite for US real estate deals or the ever-growing equity exchanges throughout Asia, the world still sees the US as the flight-to-quality market, providing the safest place to invest. Even once-hard-hit Japan is finally back and will be leading the pack for the next few years.

GlobeSt.com: What else should our readers know about CRE financing today?

Aitkenhead: As ever, the availability of debt financing drives equity pricing. Debt is cheap today, even with rates rising. Credit standards are still thankfully disciplined, and we think that is likely to continue, absent a radical change in the regulatory environment and corresponding desire by large lenders to ramp up risk. We are keeping a close eye on the debt market—depth, risk appetite and pricing—and are generally confident that the market will likely continue to be measured and therefore constructive for equity investors in CRE.