Donald Trump’s return to the White House is likely to change commercial real estate.

This could begin today as he plans to sign several executive orders. One key program from his first term, Opportunity Zones, might expand and bring in billions for real estate investment.

However, his plan for mass deportations could worsen labor shortages, as immigrants make up 25.5% of the construction workforce. This could raise costs and delay projects across the country.

Heavy tariffs on materials from China, Mexico, and Canada may also increase prices and drive inflation. It’s unclear if the industrial sector will see immediate benefits from companies stockpiling supplies.

Trump wants to end remote work for federal employees and has asked Elon Musk and Vivek Ramaswamy to encourage a full return to the office, which could affect demand for government-leased buildings.

He plans to privatize Fannie Mae and Freddie Mac, impacting multifamily lending, while a proposed rule may speed up approvals for large projects. Additionally, reversing Biden-era energy restrictions could benefit industrial real estate tied to fossil fuels.

With high interest rates and economic uncertainty, the commercial real estate sector should brace for how these changes will unfold.

Source: https://www.bisnow.com

Please let us know if our commercial real estate brokerage services may benefit you or anyone you know. Please take a few minutes to fill out the broker opinion of value form on our website.