By Michael Snyder

Unfortunately, from a short-term perspective I don't know if there is anything that can be done to prevent the commercial real estate bubble from imploding.  Vacancy rates are surging to historic highs all over the nation, and without sufficient rental income many property owners will be forced to default.  In addition, a giant mountain of commercial real estate mortgages will be up for refinancing over the next few years, and substantially higher interest rates will make refinancing those mortgages exceedingly difficult.  We really are facing a "perfect storm" for the commercial real estate industry, and the fallout is going to be absolutely devastating for U.S. banks.

This is not a small problem.  Offices are sitting empty from coast to coast, and the total commercial real estate market in this country is currently valued at somewhere around 20 trillion dollars…

From Dallas and Minneapolis to New York and Los Angeles, offices sit vacant or underused, showing the staying power of the work-from-home era. But clear desks and quiet break rooms aren't just a headache for bosses eager to gather teams in person.

Investors and regulators, on high alert for signs of trouble in the financial system following recent bank failures, are now homing in on the downturn in the $20 trillion US commercial real estate market.