A majority of commercial real estate investors are optimistic about market conditions for commercial real estate over the next 12 months, Reuters reported.

According to the 2007 “State of the Market” real estate survey from DLA Piper, an international legal firm specializing in mergers and acquisitions, 78 percent of real estate investors and executives describe their outlook for the commercial real estate market as “bullish,” up from 43 percent in 2005.

Over the next year, many people expect the trend of private equity firms buying up large portfolios of properties to continue. Of those surveyed, 61 percent expect private equity investors to be the most active real estate investors over the next year. Of the remaining respondents, 17 percent said they expected pension funds would be the most active and 13 percent singled out foreign investors.

Investors are divided on the implications of large private equity deals on smaller companies. About 44 percent of respondents said the large deals might lead to more opportunities for smaller companies, since private equity firms tend to buy properties in bulk and sell them off in pieces to smaller investors. Another 24 percent said the large portfolio deals would create fewer opportunities for smaller companies, and 28 percent expect no change.