A new study highlights that large US banks may be more exposed to commercial property risks than regulators appreciate. The Federal Deposit Insurance Corporation (FDIC) shows that commercial real estate (CRE) concentration risk is prevalent in banks with assets under $100 billion. However, significant office losses have been absorbed by banks with assets over $100 billion. The study warns of a commercial property blind spot risk, indicating that big banks are more vulnerable to a potential real estate meltdown than previously thought. Additionally, Real Estate Investment Trust (REIT) debt poses a threat to large banks. #CMBS