If the Fed starts selling off commercial real estate loans from its balance sheet, it will drive up rates even more on new loans, because of a bond buyer can realize higher return by buying at a reduced price from a Fed sale they'll demand the same from a new loan issue.
The double whammy effect however is that institutional real estate allocations, if they're eaten through, along with them will be the appetite for lower yields and what do you have left, but opportunistic funds and investors that will drive prices down even more, to increase rates and returns even higher.
