The world is awash in an unprecedented amount of capital looking for places to invest, fueling demand and sky-high prices for commercial real estate.

Sam Zell is a billionaire real estate investor.

” This is just an extraordinary wave of liquidity, not just in the domestic U.S., but on a worldwide basis,” Zell said. ” I think the excess in liquidity will exist for six to eight years, until growth catches up.”

Wow, I thought CAP rates were as low as they could go. Zell disagrees.

” It is as likely that cap rates will be slightly lower a year from now as it is that cap rates will be higher a year from now,” he said.