"I don't think that this crisis has even hit the commercialmarket yet," he says. "When you consider all the securitized debtfloating around out there on the commercial side, and the typicaltwo- to four-year terms, all this debt that has put on the books in'03, '04, '05, '06 and '07 hasn't rolled yet. All that debt isgoing to be coming due, and that debt went pretty deep into thecapital stack on very inflated pricing."

He adds, "The Fed is focused on the residential side, but theyaren't saying anything about commercial. There's some potentiallyscary stuff out there with the commercial mortgage debt."

One worry: "Cap rates are going up," Pappas says. Pappas notesthat people need to come to realistic terms on the pricing ofproperty. "Everybody is saying this is a liquidity crisis," hesays. "This isn't a liquidity issue it's a pricing issue."