NEW YORK CITY-The impact of Moody’s massive andgreatly-anticipated downgrades on 15 major banks has the majorityof the commercial real estate industry feelingunfazed after US stocks and financial institutions rallied as ofmarket close on Friday. But sources tell GlobeSt.com that while thecredit cuts should not impact commercial real estate financing,larger concerns—such as job growth, global volatility and economicuncertainty—have the potential to cause a slowdown in leasing andsales across all property types.

“The banks impacted by the downgrades will still have to competewith other providers of capital to the sector,” PatrickCrandall, a senior managing director in the Los Angelesoffice of Cushman & Wakefield, tellsGlobeSt.com. “It may cause the affected banks to be more selectiveabout the deals they pursue to hold on their balance sheets, but Ithink they were already fairly selective on those deals. The biggerissue facing commercial real estate is the continuing slow globalrecovery, uncertainty over Europe and the Middle East, andlackluster job growth at home. It’s hard for lenders of anyvariety to get aggressive when they are not confident about thedirection of the overall economy.”

The ratings action was the result of a previously announcedreview in February by Moody’s to reassess the volatility and risksthat creditors of firms with global capital markets face. ButBill Hughes, senior vice president and managingdirector Marcus & Millichap Capital Corp.,says the news of the downgrade is more “ho-hum” than anythingelse.