Walt -- Bob, whatever happens with the expiring tax cuts and the scheduled new legislation, any reference to a "cliff" does not sound good.

The main impact for commercial real estate will be the long term capital gain rate, increasing from 15% to 20%.

This affects more than real estate investments, but it will lower capital (money) moving into commercial real estate

Although many pundits are saying that commercial real estate will come out of this is as a favorable investment.

Bob -- Walt, that's a little bit of talking out of both sides of your mouth. How can you say the fiscal cliff will create less money into real estate but commercial real estate is still a good investment?

Walt --  Because I'm an optimist Bob!

Seriously if you look at the commercial real estate market, first there is lower volatility in commercial real estate, it's an excellent way to diversify investments, while you're invested in commercial real estate you will receive a yield on the investment and it's also a hedge against inflation and don't forget about the appreciation of the commercial real estate asset. This makes for a stable long term investment.

CRE values are depressed and the best time to invest, or the best time to buy is when there are great opportunities for upside. Bob, buy low is still a great strategy.

Bob -- are there any other tax implications we need to be aware of with the fiscal cliff for commercial real estate?

Walt -- Yes, estate taxes are currently taxed at 35% with an exemption of $5 million in assets. It goes to 55% tax and a $1 million exemption after January 1st. Bob, you work hard your whole life and want to leave your kids or heirs something when you go, I don't think any of us want another heir, the federal government that is going to take 55% of your blood sweat and tears, it's just wrong!

We will also see federal, state and local governments continue to shrink their lease space requirements. This will show up primarily in the office lease market as governmental agencies continue to evaluate their space requirements to meet their budget demands.

So the fiscal cliff will have some impact on the commercial real estate market, but there is a silver lining as investors will continue to look to commercial real estate as a favorable investment.

Bob -- Walt, how can people get a hold of you today to talk about commercial real estate?