Traditional Bank problems have arisen from commercial real estate.  In 2007 the story was all about residential real estate.

However the commercial real estate market cannot be ignored, and the situation in London shows rents predicted to drop 5% this year.  The graph shows that the volume of property under construction that is unlet is huge.

Commercial property | Dominoes on the skyline | Economist.com

Relevance to Bankwatch:
The consequence of future commercial real estate problems drives into business profitability, and the sheer size of the transactions, will impact Banks’.