Efficient downscaling in a transcoder is important when the output should be converted to a lower resolution video. In this letter, we suggest an efficient algorithm for transcoding from MPEG-4 SP (with simple profile) to H.264/AVC with spatial downscaling. First, target image blocks are classified into monotonous, complex, and very complex regions for fast mode decision. Second, adaptive search ranges are applied to these image classes for fast motion estimation in an H.264/AVC encoder with predicted motion vectors. Simulation results show that our transcoder considerably reduces transcoding time while video quality is kept almost optimal.