The real estate industry is entering an "Era of Less" in 2011 characterized by a smaller industry, lower return expectations, restrained development, reduced credit availability, and lower profits. Commercial lenders and borrowers will accelerate recognition of substantial losses from pre-recession deal making. Properties with weak cash flows face problematic workouts and uncertain refinancing prospects as loans mature. Housing remains mired in a dead zone of reduced demand. However, owners of high-quality properties in prime markets enjoy better outlooks as capital flees to quality assets. Apartments are seen as the top core investment. Some investors positioned with cash and avoiding overleveraging can take advantage of opportunities to acquire distressed assets from credit-starved