CHICAGO- Billionaire real estate tycoon Sam Zell sees a realestate industry dominated by a few large players in the future, achange that will be bring huge consolidation activity to theindustry in coming years. In a Q&A held here, Zell spoke onthis and other topics, ranging from over-investment in technologyby industry to how real estate companies will become more focusedon becoming operating companies instead of just dealmakers.

“The oligopolization of our business will lead to it becomingdramatically less cyclical,” said Zell. “And in the future, the bigguys are going to be 20% more profitable than the smallplayers.”

Equity Residential REIT will likely be moving into offeringservices to its huge client base of renters, says Zell. “EquityResidential interfaces with one million customers a year, 80,000 ofwhich leave to buy a home. We are going to be offering thesecustomers mortgages, insurance and other services.”