Foreign capital flows into US commercial real estate reached a record high in the first quarter of 2015, surpassing the previous record set in 2007. While job growth has slowed, real estate fundamentals remain healthy overall. Apartment prices and cap rates have continued to rise and compress, though some markets may have peaked in occupancy and rents. Industrial indicators point to moderate expansion in 2015, while trends in online retail will impact demand for warehouses and distribution facilities. Office absorption was lower than completions in the first quarter after being higher in previous years, and certain markets like Houston face rising vacancy risks if oil prices remain low. Retail sales volume was unchanged from a year ago despite challenges from online shopping that are transforming the sector.