The NAR reports that commercial real estate continues to boom.  I'll focus on multifamily properties, but most commercial sectors are booming.
The REALTORS Commercial Alliance states that there have been some problems with access to capital but overall some commercial real estate is at record highs.

It was noted in the AMA's Perspectives and Projections, that single family rental housing is having an impact on the apartment market, but mostly in the $1,000 plus rental bracket.  Those serving the $1,000 or lower market in Phoenix have lower vacancy rates.

On a national level vacancy rates are expected "to average 5.9% in the 4th quarter".
Average rent is expected to increase 2.9% in 2007.  At the AMA conference it was 3.2 for Greater Phoenix. 
Multifamily net absorption is down, but transactions are up.  NAR states that "half of the multifamily transactions were by private investors, while condo converters accounted for only three percent of acquisitions", confirming that converters are only a small part of the multifamily market.

This is good news but multifamily apartments are a good bet against inflation, which many economists are talking about. 

Take a look at the rental apartments we have for sale.