What emerging trends will drive investment and development in 2016? 1031 money will continue to drive the market. Compressed cap-rates will reverse and prices will soften slightly due to buyer resistance and potentially higher interest rates. There will also be a decrease in new hotel development which has been overheated in recent years as the banks will not be as quick to lend on new projects. It is also important to keep an eye on how de Blasio will address the growing homeless problem and its impact on the real estate industry.