"There is a real bifurcation in the market," Dick Reynolds, aprincipal at Spaulding & Slye Colliers, tells GlobeSt.com. Hepoints out that while high quality buildings are pricedattractively and receive many bids the lower end products arebarely moving. "Investment capital won't take a chance," notesReynolds.

Reynolds attributes investor's interest in the real estatemarket to the stock market's continued poor performance. "Thealternative is not very attractive," he says. But he emphasizesthat those investors are "still very choosy." Creditworthy tenantsalso help but as Reynolds says, it is more and more difficult todiscern which tenants are creditworthy. "Major financialinstitutions usually are, but look at Arthur Anderson," he says."They were considered creditworthy and then they're gone."

The tenant risk has only served to make high quality buildingsthat much more in demand. Investors want the quality so even ifthere are other problems the underlying asset is still solid.Reynolds points to Spaulding & Slye's recent sale of One BostonPlace as indicative of the market's mood. The downtown building isfully leased to Mellon Financial and went for $260 million to apension fund. The deal was put together privately and the pensionfund snapped it up immediately but Reynolds says that had it goneon the market there would have been a lot of interest in theproperty.