Despite some improvements in liquidity, the commercial realestate debt market is contending with the dual impacts of a wave ofmaturities, exceeding the current capacity of the market, andsevere price declines.

The result is an onslaught of maturing debt that is underwater.These mortgages are putting pressure on the market, though it isnot entirely clear if this will translate into a new chapter ofdefaults.

The mortgage landscape has contended with a rising tide ofmaturities at the same time it has experienced a severe contractionin credit availability. We estimate that $1.7 trillion incommercial mortgages (including multifamily paper and constructionand land loans) will mature between 2010 and 2014, an average ofnearly $350 billion per year. According to our estimates,maturities will peak at nearly $370 billion in 2013. Maturingamounts will decline thereafter but will remain elevated for sometime, exceeding $250 billion annually through 2017.