The numbers, which have been compiled from Real CapitalAnalytics,represent an increase of 10%, or $17.3 billion, sinceDelta'sJanuary report and 33%, or $46.9 billion, since November2009.

The good news is that the rate of growth continues to slow andhas,in fact, come down from its peak during the first half of 2009,whenthe total value was doubling every three months, the reportconcludes. This slowdown is due in large part to the willingness oflenders to pretend and extend.

"But the real test of distress velocity will come this year andin2011, as around $600 billion in loans come due and expertspredict up to 350 banks may fail," the report says. Retailproperties continue to be the largest segment of thedistressedmarket, with $41.7 billion, compared to $38.5 billion inJanuary.Also, distressed apartment properties grew the most sinceJanuary--by$4.9 billion to $35.8 billion, or a 14% increase.

In terms of regions, the Washington, DC area remains relativelycalm.The commercial real estate market here is in relativelygoodshape, Greg Leisch, CEO of Delta Associates tells GlobeSt.com,because much of the area's distressed assets--37%--are largelyconcentrated in four companies: General Growth Properties, Opus,Tishman Speyer and Broadway Management.