Total returns over the next five years will be generated mostly by current income. Average cap rates are 7.5-8.5% for office, industrial and retail, and 7.0% for apartments. Because of this attractive income, there has been fierce competition among investors for core, stabilized assets, causing prices to rise since the second half of last year. Bank lending has improved, especially for core assets under $100 million where owners can finance on very attractive terms at 50%-70% loan-to-value ratios. Expect credit conditions to improve but only gradually because banks and regional ones are still dealing with their own balance sheets.