The U.S. commercial real estate market will cool off next year in a "healthy correction" that will probably "bypass long-term investors" while penalizing speculators and overleveraged buyers, according to an annual survey of CRE industry experts.The report, Emerging Trends in Real Estate 2008, says 78% of the more than 600 respondents anticipate more-stringent underwriting standards in 2008. Nevertheless, they expect most real estate investments to outperform U.S. stocks and bonds, said the Urban Land Institute and PricewaterhouseCoopers LLP, which jointly publish the report. "The commercial real estate market has been going full throttle for several years, with easy money and low interest rates that drove some sectors into questionable lending practices and highly leveraged spending," said Tim Conlon, a partner and U.S. real estate practice leader at PricewaterhouseCoopers. ".... Those who went beyond moderation will likely experience some headaches in 2008." The organizations can be found online at http://www.uli.org and http://www.pwcglobal.com.

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