We've noted recently that the Blackstone group's deal for Equity Office is not going to be a snap. It has put together a financing package and has sold off some properties pretty quickly to make the numbers work out. Yet there is still some risk. I don't think it can sell the entire portfolio; it will likely be forced to operate some and that may not be easy. Higher interest rates are still a concern, and the market for commercial real estate may turn down. The market seems to be turning a bit bearish. The bloom is off the REIT rose. And recall the market was not kind to Vornado until it pulled out of the bidding. All that said, this may end up as a list of mere caveats someday. Every deal has risk. Holding real estate is not the worst thing that can happen.

For more:
- here's the Fortune article