Total returns from U.S. real estate investments will remain stable but will begin "a slight decline" this year, according to Prudential Real Estate Investors, Parsippany, N.J.PREI said it expects private, unleveraged real estate investments to produce average total returns of 12%-15% in 2006, down from 20% last year. In its quarterly outlook report on the real estate markets, PREI said, however, that the "most immediate risk" to the outlook for the commercial real estate market is the possible fallout from a slowing housing market, especially the market for condominiums. "All good things must end, including the terrific run that real estate has enjoyed over the past several years," said Youguo Liang, managing director of PREI Research. "Real estate should continue to perform well in 2006, however, and it remains attractive to investors, particularly with property fundamentals improving and new supply still years away in most markets and property types." PREI can be found online at http://www.prei.com.

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