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Post S&P, Commercial Valuations to Hold Steady

NEW YORK CITY-CRE industry leaders tell GlobeSt.com's Jacqueline Hlavenka that the US credit rating downgrade should not have a dramatic effect on property pricing, but consumer confidence is another story.

By Jacqueline Hlavenka | Updated on August 18, 2011

NEW YORK CITY-Lenders, investors and tenants are still largely uncertain about the future of the commercial real estate industry spurred by Standard & Poor’s lowering of America’s long-held sovereign credit rating from AAA to AA+ just over a week ago. But industry leaders tell GlobeSt.com that core assets in gateway cities should maintain high values and continue strong performance despite decreased consumer confidence in the marketplace.

“The downgrade, to me, doesn’t suggest that America is going bankrupt or investments in the US have become far more risky,” says David C. Wilkes, a partner at Tarrytown, NY-based real estate law firm Huff, Wilkes, Cavallaro & Loveless, LLP. “If anything, it probably has more of a psychological reinforcement that we are indeed down, and it’s going to take us time to get up and running.”

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