Both the U.S. economic and real estate cycles are now past the halfway point in their recoveries and uncertainty is rising due to geopolitical and economic turmoil, most of which is concentrated abroad. The U.S. economy is set to grow approximately 2.0% this year, positioning real estate fundamentals and valuations to ride the recent momentum of robust rent growth and falling vacancy rates into 2016. The real estate cycle is maturing as it enters its later stages. Yet, the relative strength of the U.S. economy and rising capital flows should support U.S. real estate values throughout this cycle and into the next. Later cycle behavior has prompted us to take an equally candid look at risk as well as longer term investment opportunities.