NEW YORK CITY-The impact of Moody’s massive and greatly-anticipated downgrades on 15 major banks has the majority of the commercial real estate industry feeling unfazed after US stocks and financial institutions rallied as of market close on Friday. But sources tell that while the credit cuts should not impact commercial real estate financing, larger concerns—such as job growth, global volatility and economic uncertainty—have the potential to cause a slowdown in leasing and sales across all property types.

“The banks impacted by the downgrades will still have to compete with other providers of capital to the sector,” Patrick Crandall, a senior managing director in the Los Angeles office of Cushman & Wakefield, tells “It may cause the affected banks to be more selective about the deals they pursue to hold on their balance sheets, but I think they were already fairly selective on those deals. The bigger issue facing commercial real estate is the continuing slow global recovery, uncertainty over Europe and the Middle East, and lackluster job growth at home.  It’s hard for lenders of any variety to get aggressive when they are not confident about the direction of the overall economy.”

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