Commercial real estate bubble?

This is the first I’ve read of a potential commercial real estate bubble.

But, Pearlstein points out, the Blackstone Group’s recent acquisition of Equity Office Properties Trust is indicative of bubble conditions vulnerable to a downturn. That’s because 80 percent of the $36 billion deal will be financed with debt and the capitalization rate is an estimated 5.5 percent.

They are obviously betting on appreciation.