Rates are currently in the 3.85 to 4.35 percent range for 5- and 10-year mortgages from life insurance companies, according to the John B. Levy National Mortgage Survey. Fuller leverage 10-year loans from Fannie Mae and Freddie Mac or CMBS lenders are pricing 0.50 percent higher, with 5-year bank loans pricing in the 4.25 percent to 4.5 percent range.

John Bogle, founder of The Vanguard Group, once quipped that “the genius of investing is recognizing the direction of a trend, not catching the highs and lows.” With regard to investing in commercial real estate today, the trend is caution.

This is particularly obvious with certain property types. Shopping centers anchored by big-box retailers, suburban office properties and hotels are clearly receiving more scrutiny and less debt from lenders.

Overall, with less debt available, prices stagnate and fall.

The counterbalance to less debt, however, is that investors are still pouring money into real estate, making the trend more difficult to recognize.

Again, this is more obvious in some property types than in others.