Bad news for commercial real estate

The Wall Street Journal is reporting that commercial properties are showing signs of a downturn.  Commercial sales are at a stand still as lending has dried up.  The Journal predicts however that the commercial down turn will not be as bad as the current decline in the housing market.

I take issue with The Journal because I believe the commercial real estate declined is now international as we see in Japan.  The Fed is not talking about a mild recession rather a severe one.  Credit markets are getting worse, the FDIC is predicting bank closures, and major banks are or will be under-capitalized within a month.Â

Is it possible that the media doesn’t believe that there aren’t commercial real estate deals which will now go bad just as the housing sub-prime market?  I could be wrong but the everything I look at tell me that a major correction is on its way.