WASHINGTON -(Dow Jones)- Some lawmakers welcomed news Tuesday that 10 of the nation's largest banks are poised to repay billions of federal assistance but warned that a "ticking time bomb" in commercial real estate could deal a punishing blow to lenders and the economy.

"I am very concerned about the ticking time bomb we face in commercial real estate lending," congressional Joint Economic Committee Chair Carolyn Maloney, D-N.Y. said at a hearing Tuesday. She noted that an estimated $400 billion of commercial real estate loans are coming due this year, with another $300 billion due in 2010.

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written by James, June 23, 2009

Interesting that the default rate is actually going to possibly exceed the resdential implosion, not by volume, but rather dollar amount. Even if commercial property owners were able to refinance, the value of the subject property has dropped at a rate similar to residential markets, over the last 3 years. Interest rates are guaranteed to go up from this point I beleive.

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