Second in a four-part series on European InvestmentIssues.

A rush of capital chasing too few deals and the race to place atleast a portion of that capital in alternative investments--all setagainst the backdrop of the Incredible Disappearing Cap-RateEnvironment. Sound familiar? It should. Stateside investors havebeen juggling these forces for some time now with varying degreesof success, some striking it big, some coming up empty-handed inthe great trophy grab. The difference is that we're not discussingthe states here, but the pan-European investment scene, awash incapital and expected to gain yet more as the ground rules forplacing funds undergo a dramatic shift. In an exclusive interviewat Mipim in Cannes last month, Gordon C. Black, managing directorof international private equity for Heitman Real Estate InvestmentManagement in London, talked about the shifting dynamics ofEuropean commercial real estate and how Heitman plans toharness them.

GlobeSt.com: It was an explosive '05. What does theinvestment pipeline look like today?