To get the right answer, you first have to ask the correct question. Today, investors are asking whether the commercial real estate market is at peak asset pricing or, more directly, whether asset prices can only go down from here. But shouldn’t we really be asking, “Is now the time in the market cycle to be taking on more risk in the pursuit of short-term gains?” Conventional wisdom today seems to be to prioritize maximizing returns at the expense of risk control. We believe, however, maintaining an equal focus on return potential and risk control will result in more favorable outcomes, especially in the core space. This conclusion is arrived at based on the following factors, one of which includes pricing levels: