This document discusses the risks associated with commercial property lending in the UK. It notes that commercial real estate (CRE) lending remains high at £243 billion as of 2010, accounting for around 50% of UK banks' exposure to non-financial firms. Write-offs are expected to rise as property prices remain depressed, with indices down over 40% from 2007 levels. Around £34 billion of loans are in breach of financial covenants and £20 billion are in payment default. The document examines risks like rising arrears, falling collateral values, and breaches of loan-to-value covenants. It outlines banks' strategy of forbearance to restructure loans and avoid losses, but notes this is a temporary