Tariffs Are Not Stopping the Commercial Real Estate Recovery
When President Trump announced that he would be imposing tariffs, the country braced for an economic slowdown. The expectation of a slowing economy caused a lull in commercial real estate deals. But, according to new data, that slowdown was only temporary.
Heads of some large commercial real estate companies have said that they see signs that commercial real estate is shrugging off tariff fears. They say that despite the tariffs, they are still bullish on the macroeconomic situation when it comes to a commercial real estate recovery.
The big question that is still adding uncertainty for the real estate industry is when the Federal Reserve will lower interest rates. The current Fed Chair has said that he wants to see signs that inflation will remain low. But his tenure ends in May of next year and it is expected that the next chairperson will be much more willing to listen to the Trump administration’s desire to lower rates to spur the economy. If rates do get lowered, it will ignite more real estate deals and push property prices higher, no matter what happens with the tariffs.