Conditions in CRE are, well, peculiar. On one side the bottom's getting closer. BlackRock Real Estate Research has said that now is the time to invest in CRE. And Colliers U.S. CEO Gil Borok recently said on CNBC, "Buyer and seller equilibrium is being reached, which also helps in terms of starting to move volume, sort of a more realistic take on pricing certainly helps the market."

But then, markets are recognizing how precarious conditions can be for banks, the institutions that are traditionally the largest suppler of financing for commercial real estate. Concerns about conditions in CRE might push banks into restricting lending even more, which would reduce available financing and make the industry more dependent on alternative funding sources, like private equity, with significant higher financing costs than commercial banks.

Virtually everyone that has spoken to GlobeSt.com in the last 12 to 18 months about the topic has mentioned how much capital has been sitting on the sidelines — dry powder waiting for opportunities to invest. Given the problems facing banks and their reluctance to attract more attention from regulators, chances are that the cash will get funneled through other ways, like water pressure on a membrane pushing in until something breaks.