The Credit Crunch will hurt even the most experienced who have not been wary.

Implications: Commercial real estate is a business of opportunity, and opportunity comes at its own pace. 

Analysis:  The Macklowe organization knows that, so when properties became available that suited their business model, they moved boldly.  But the rewards for bold action come when opportunity meets timing.  It’s easy to believe that the timing is right when you are involved, but even the best can be tempted at the wrong part of the cycle.    The Maclowe organization is the successor in New York to Blackstone’s purchase of Equity Office Properties.  Blackstone and others who purchased parts of the EOP portfolio are suffering too.  The combination of flattening rents, escalating expenses and taxes, higher interest rates and retreating corporate office demand is going to make investment gratification an iffy thing for these buyers over the coming correction period.  No doubt there are many other acquisitions and developments in the U.S. which will be affected in the same manner.