Despite the fact that "everyone" wants to claim we're at the topof the market, mega mergers as well as major asset sales are goingto be with us for a while, Zell stated. GE Real Estate presidentand CEO Michael Pralle agreed, noting that bucking the generalwisdom that the market is about to turn has caused"stomach-turning" deal decisions in his shop. "The most quotedphrase in our office is that every deal we make is a mistake," hecommented.

Further countering that general wisdom, "The biggest surprise iscoming," said Roth, "and that is that rents will continue to riseand make the current prices seem right on the money."

But fundamentals can't justify all deals, and "assets withdifferent quality considerations are trading at the same prices,"as higher-valued properties, said Zell. "The most vulnerable areais where assets are priced indiscriminately to value." He citedsuburban offices moving for CBD price tags. "Every time the marketcommoditizes like that, not long after, we start havingproblems."