The primary conclusion of the 2014 Allocations Monitor is that institutions continue to allocate significant capital to new real estate investments, which is consistent with the trends anticipated in the inaugural 2013 Allocations Monitor. As highlighted in the 2013 Allocations Monitor, the weight of this capital is having a significant impact on the industry, with respect to transaction volumes, fund raising, lending activity and property valuations. Although some industry research indicates that the property markets may be nearing a peak, we believe that the continued supply of capital may sustain current valuation and financing metrics (including capitalization rates and the cost of debt capital). However, the concerns for the potential rise in interest rates, slower economic growth, new supply and valuations outpacing fundamentals have contributed to moderating investor conviction regarding the investment opportunity in real estate.