"The return landscape for 2012 presents a mixed bag, and all depends on where and when investors bought, the amount of leverage employed, and asset quality," said ULI Senior Resident Fellow for Real Estate Finance Stephen Blank. "Many players will back off from bidding on trophy properties in top-tier markets, fearing that pricing is outpacing the potential for recovery in net operating incomes. Additionally, investors believe that cap rate compression has ended and a leveling off is expected with possible upticks in cap rates for some property sectors in certain markets."
A promising trend, if it holds. This excerpt was taken from here.