I combined two links to Mr. Lockhart’s statements. One was made in his speech and the other was from a Q&A afterward.
“Vacancy rates are rising, and in 2009 a considerable amount of debt comes due and must be refinanced. Around $400 billion of commercial real estate refinancing is hanging over the market.
Many banks are pretty heavily exposed to commercial real estate. It is also a big part of the securitization market. So commercial real estate is one that concerns me. If you think of 2007 and 2008 in a negative sense, as the year of residential real estate issues, it is possible to think of 2009 as the year of commercial real estate. That is the one domestic factor that keeps me up at night.”
Dennis Lockhart, President of the Federal Reserve Bank of Atlanta