The tough economic conditions in the U.S. have adversely affected just about every significant industry over the last couple of years. In the case of commercial real estate, while market correction forces are hard at work, the "bubble" has yet to burst.

San Antonio and the surrounding areas have increasingly seen more foreclosures and troubled loans despite the city’s faring better than other major metropolitan areas.

Most people are familiar with the circumstances that caused the downturn in residential real estate, such as easy credit, relaxed underwriting standards, adjustable rate mortgages, widespread speculation and/or a lack of fiscal discipline by many borrowers. Not surprisingly, these same factors have also contributed to the problems with commercial real estate investments and income-producing properties.

Investors gambled that the market values would continue to rise, but alas, the music finally stopped and property values declined precipitously. Big box retail closures, combined with a lack of business expansion resulted in vacant strip centers or lower rent payments, thus creating debt-service challenges for landlord borrowers.