A recent study has highlighted significant risks in the commercial real estate (CRE) sector for U.S. banks. The study warns that U.S. banks have a 'commercial property blind spot' which poses a substantial risk. The exposure of big banks to CRE lending grows by about 40% when indirect lending to Real Estate Investment Trusts (REITs) is included. This increased exposure has raised concerns among regulators about the stability of the banking sector. Additionally, small banks have increased their CRE exposure by the largest amount in 14 years, further exacerbating the risk. The Conference Board has indicated that the worst is yet to come for the commercial real estate market. There are also reports of originally AAA-rated Single Asset Single Borrower (SASB) bonds trading at distressed levels, implying deep losses. The rising CRE delinquency rates could potentially lead to more regional bank failures soon. Small banks' CRE holdings are at uncomfortably high levels, over 30%. CMBS concentration risk is also a significant concern.