I'd love to write a long response as this is a topic of interest to me, but I'm short on time right now so I'll keep my thoughts brief.In general, the commercial sector is wrestling with the mess it's in due to property depreciation that has affected many states, declining business revenues, and borrowers who are often in a weakened financial state.To add to the problem, you have lenders who are dealing with fixing their balance sheets, trying to get rid of toxic assets, and in some cases, being watched/managed by the FDIC.When you factor in the billions of commercial paper that is coming due just this year alone, you have a real mess.However, banks seem to be more willing than before to take a haircut on a loan if they really want it off their books.

One of the first things you have to decide is what sector of RE you want to invest in.

I don't know if you going to be cranking out 45% returns in the coming years but it's a good sector to be invested in long term

Since purchase price is a huge variable, I'd not listen to anyone who says they know what does and doesn't exist.If I listened to people that like, and there are many in the service sector of REI, I'd never have done a deal.

Rognlie found the trend to be almost entirely isolated to the housing sector."

I too am seriously interested in the MF sector.

I'm diligently working on a business plan but I have wholes in my plan mostly in the Financial sector because I yet to close on a deal.

So, also check the population demographics.Job Quantity and QualityIn many parts of the US, manufacturing and similar jobs are going away and what remains are service sector jobs.

(Source: MPAMag.com: http://www.mpamag.com/mortgage/watt-private-sector-unready-to-replace-fannie-and-freddie-18271.aspx )Posted by Corey Curwick Dutton

While the Buffalo Billion is great and all, what has been really been driving the growth of Buffalo is the private sector (partially through historic tax and preservation credits).What we haven't seen is a couple of things that are really holding the city back:1) A lack of necessary amenities for downtown living like Andrew said (grocery stores, more retail stores, et cetera).