Texas' commercial real estate market steadily worsened as recession took hold in 2009. Commercial real estate's woes don't bode well for banks already struggling with losses from residential loans. The number of distressed properties--those in foreclosure, in bankruptcy or restructured--is rising.

The housing bust leaves in its wake elevated foreclosure levels in Texas and the U.S. Like other consequences of the bust, including declines in construction and existing-home sales, foreclosures have been less severe in Texas. While the nation's foreclosure rate has grown nearly sixfold over...

Every segment of the Texas commercial property sector suffered during the recession of 2009. Demand withered for space in offices, warehouses and retail centers, pushing up vacancy rates and lowering rental rates. Private nonresidential construction dropped sharply, reaching near-record lows....

Banks in the Eleventh Federal Reserve District are performing better than their peers. However, signs of strain are still evident following the recession and financial market crisis. Some banks that restructure troubled loans by granting borrowers easier terms subsequently find the loans...

Dallas Fed Research Director Harvey Rosenblum discusses the stability of the U.S. economy's Great Moderation and how it set the stage for the financial turmoil that has gripped the nation since August 2007.

Differences in economic factors and mortgage characteristics give the state a lower delinquency rate.

The current financial crisis has brought a severe decline in subprime mortgage lending. Like the nation, Texas and its metros still have exposure to existing loans. Housing prices, unemployment and overall economic activity will play a significant part in determining how many of them run into...