WASHINGTON, DC—The Federal Reserve Bank endedits quantitative easing program last week on asatisfied note. The program accomplished what it was supposed to,the Fed said: it stabilized the economy during a time of upheavaland significant unemployment.

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In truth, though, the impact of the program will be with us forsome time. The Fed has only stopped buying these securities; itstill holds a massive amount on its books. The bottom line forcommercial real estate: it will be business as usual in terms ofrates and policies for at least the next six months.

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"There has always been a concern in the real estate industryabout the impact on interest rates when the QE program ends,"Ann Hambly of 1st ServiceSolutions, tells GlobeSt.com. "We now know that the end ofthe QE program does not equal a rise in the Fed Funds rateimmediately, according to the announcement by the FederalReserve."

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There are other reasons why few expect the US economy to gothrough QE3 withdrawal in the near term.

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The European Central Bank and, as of late last week, the Bank ofJapan, have launched their own quantitative easing programs, theeffects of which will eventually be felt in the US economy.

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In addition, principal pay down of bonds on the Fed's balancesheet will still be used to buy agency GSE paper, JacquesGordon, global head of research and strategy atLaSalle Investment Management points out. "Alsothe quantitative easing program was part of worldwide demand for USTreasuries," he tells GlobeSt.com. "That global demand still existsand reduced deficits means that Treasury will not have to issue asmuch debt." So demand for US T-bonds could remain high relative tosupply, which will keep downward pressure on interest rates for thelong end of the curve, even after the QE program stops, Gordonconcludes.

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It is also important to remember that the Fed has been extremelymethodical in its tapering of QE3 and the market has had ample timeto get ready, says Andrew Smith, managing directorat Kayne Anderson Real Estate Advisors.

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Prior to the end of QE3, the Fed had already cut monthly bondpurchases from $85 billion to $15 billion and both the economy andCRE have continued to improve, he says. "Cutting the final $15billion is not going to cause any major change. It seems to us thatthe bigger focus should be on interest rates, easy credit and thepotential for global macroeconomic unrest."

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