introduction us & california budget issues national economic fundamentals technology venture capital trends local business cycles demographics employment inflation housing market apartment commercial conclusions comparative advantages and risks over 15 years of real estate financial research institutional due diligence underwriting specializes in residential valuation brokerage services tracking forecasting efficient portfolio construction optimization risk management environment forecast 2005 economy growth accelerated 2003 2004 to average 4 2 per year compared expected slow 3 5 barring any major shocks such as stock bond declines from rising short long term interest rates caused by massive government funding crowding out federal state deficits peaked 2002 bottomed at higher levels historical projected rise through 2008 high flows persist tech sector reached first cyclical peak moving recovery phase reflecting demand prices investment semiconductors it equipment however industry slowed second half
