The financial bloodbath that could have occurred in the commercial real estate market will be averted as long as federal regulators continue their look-the-other-way policy when it comes to lenders and their troubled borrowers, the head of a San Diego workout firm told a group of real estate journalists in San Antonio.

"The regulatory climate is preventing" the commercial market from falling off the same cliff from which the residential sector tumbled, Douglas Wilson, chairman of the Douglas Wilson Cos., said at the National Association of Real Estate Editors' annual conference.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.