1. What will create the biggest buzz in REIT news during 2005?
"The biggest news will be how hot the hotel acquisition market will be, specifically condo hotels. The whole concept of selling pieces of hotels to individual investors will become very common."

2. What advice would you give to an investor buying into REITs for the first time?
"Diversify. Make your sector bets, but don’t put all your eggs in one basket. Diversify across sectors, geography and property types (Class A properties, etc.). When you do make specific bets, make sure they are with companies that have a quality management team."

3. What professional in the REIT industry do you admire the most, and why?
"Steve Rogers, president and chief executive officer of Parkway Properties, Inc. (NYSE: PKY). He is a modest, unassuming CEO in an industry where we have very few of those. Rogers motivates his people and is focused entirely on satisfying his customer. Because of this he has consistently been able to create value for shareholders."

4. Over the next 12 months, which real estate sector(s) will perform the best, and why? Additionally, what sector(s) will face the biggest challenge, and why?
"The fundamentals in most real estate property types are improving slowly, whereas hotel improvement has been more rapid. Very few hotels were developed after the Sept. 11 terrorist attacks.

As a result, the low supply growth coupled with a recovering economy and increased business travel has contributed to the hotel sector being the best performing sector. Hotels are at less risk of rising interest rates because growth rates will trump the cap rate effect.

The office sector faces the greatest challenge because of the long leases. Some markets are improving to positions where rent levels are below expiring lease levels. The valuations are also strongly impacted by rising interest rates. If investors become nervous about a rising interest rate environment, they will most likely pull out of REITs, particularly those in the office sector."