CIBC's Patrick Crandall

The commercial real-estate problem has become a focus of federal regulators in recent weeks as they stress-tested the 19 largest US banks to see where losses could pop up if the economy, rather than recovering, worsens.

The stress tests of banks was the focus of GlobeSt.com’s Quick Poll last week, asking readers if the tests made them any more comfortable or confident that the banks will get through the recession. A majority vote of 69% said the tests didn’t make them any more comfortable, while 31% said the tests showed they’ll get through the recession. Patrick Crandall, a managing director in the Los Angeles office of CIBC World Markets tells GlobeSt.com that the results are no surprise.

It is not surprising that the majority of respondents to the survey find little comfort in the results of the government stress tests. While the broader market generally viewed the results as favorable, GlobeSt.com readers are aware of just how difficult the environment is for commercial real estate…and that we are still in the early innings for our industry.