Question-and-Answer Session
Operator
Thank you. (Operator Instructions). We have a question from Joe Morford of RBC Capital. Please go ahead.
Joseph Morford - RBC Capital Markets
Thanks. Good morning, everyone.
Robert Sarver
Good morning.
Joseph Morford - RBC Capital Markets
I guess Robert, are any of your banks shown any material signs of stress in the term, CRE or commercial construction portfolios? And after this general, what's your expectation about what the industry's loss experience would be in CRE this cycle?
Robert Sarver
I do think in general, commercial real estate values are going to come down. If you look at kind of the reed stocks and you can kind of get, I think a little view into what...where some of the values are of real estate and where they're headed.
I think CAP rates are going up. We are seeing that in a number of different products. It varies a little bit from market-to-market. For example, apartments are relatively stable still in California, in Nevada, but in Arizona the CAP rates are moving up pretty quickly Arizona has lost about 300,000 illegal immigrates that have left town because some of the harsher laws and our progressive share.
But it kind of varies from market to market. But in general, I think CAP rates are going up. We have not seeing much stress in our commercial real estate portfolio. Some of the issues we've had and a few buildings were taken back have actually been more owner-occupied which is little different than usual.
Business have just failed or I know it can release all that space but I do think the market will see some stress in that area. There is a lot of re-financings coming due. The conduit markets are pretty well shut down.
There is not a lot of liquidity in that market and I think you are going to see some CAP rates. And we've said that for years on the CAP rates, one of the reasons we've kind of gone in its some lower loan to values and this has been because we thought these five and 6% CAP rates were kind of nonsense. So I think you're can see some stress there.
Dale Gibbons
Right.
Joseph Morford - RBC Capital Markets
Okay, when you are considering acquisition obtained through assisted transactions and now are you really just looking within footprint or are you considering other states at this point?
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