Harry Macklowe has reached control of seven Manhattan office buildings

Coupled with a deal that has put his ownership of the trophy General Motors Building on Fifth Avenue at risk, Mr. Macklowe's capitulation is one of the most dramatic signs so far of how the credit problems caused by the subprime crisis in residential real estate have spilled over into the world of office buildings, stores, apartment buildings and other commercial property. Other investors who acquired commercial real estate at the top of the market are facing similar problems because values have fallen and they can't refinance the debt they placed on the buildings in rosier times.