With Donald Trump set to take office as the 47th U.S. President, the commercial real estate
(CRE) sector is bracing for impact. His anticipated policies on taxes, regulations, and trade
could spell a dynamic shift for developers, investors, and stakeholders alike.
- Tax Policies to Boost Profitable Moves and A Boost to CRE Investments
Trump is likely to maintain investor-friendly tax policies, including 1031 exchanges (deferring
capital gains taxes on property sales) and the carried interest loophole. This could ramp up CRE
investments and increase transaction flow—a potential win for investors hungry for profitable
moves. - Eased Regulations, But at What Cost?
Expect Trump to revive the deregulation playbook. Less federal oversight may mean quicker
development timelines and lower project costs, but there are trade-offs: reduced environmental
protections and potential community pushback could affect project stability. CRE leaders will
need to navigate these waters carefully. - Market Optimism and Potential Rate Cuts
Financial markets are already showing signs of positivity, fueling investor confidence. If the
Federal Reserve reduces interest rates, borrowing costs will drop, making CRE financing more
accessible. This could spur a wave of new projects and expansion efforts. - Trade Policies and Rising Construction Costs
Trump’s well-known stance on tariffs and trade renegotiations will impact the cost of
construction materials, particularly imports. Developers may see increased costs, requiring
strategic budget adjustments and procurement plans to avoid profit losses. - Housing and Urban Development Reform
Potential shifts in affordable housing policies could reshape residential development trends,
especially in urban areas. As CRE projects often intersect with residential zoning and urban
planning, these changes could have a broad effect on mixed-use developments.
What’s Next for CRE Stakeholders?
Trump’s presidency promises both opportunities and challenges in the CRE sector. Staying
informed and adaptable will be key for stakeholders aiming to leverage the new landscape.
Prepare for a fast-evolving market, where agility and strategic insight will separate the winners
from the losers.
Stay sharp and keep your eye on policy shifts. The CRE game is changing don’t get left behind.
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Meet The LeveragedCRE Investment Team
Phill Tomlinson and Eric Butler are seasoned commercial real estate brokers with over 44 years of combined experience. They lead the LeveragedCRE Investment Team at Commercial Properties, Inc. (CPI) in Scottsdale, Arizona, specializing in investment sales and tenant/landlord representation across the Phoenix and Scottsdale submarkets.
The team leverages their extensive knowledge and expertise to help investors and property owners maximize their returns and navigate complex real estate transactions with confidence.
Stay informed with the latest in Commercial Real Estate strategies designed to enhance your income property investment results by bookmarking www.leveragedcre.com Let us help you stay ahead in the market!