Why Commercial Real Estate Could Thrive Under Trump 2.0

The commercial real estate  industry has consistently proven its ability to adapt and perform well, even in the face of changing political landscapes. This resilience is particularly relevant as President Trump transitions into his second term. With a history of strong real estate performance during his first term, there are reasons to believe that the industry could continue its growth despite potential policy changes.

During Trump’s first term, real estate saw record-breaking sales, with volumes reaching $600 billion and property values rising by 18%. Cushman & Wakefield’s chief economist, Kevin Thorpe, points out that, while the full effects of Trump’s executive orders remain unclear, market reactions were generally positive. Following his first executive orders, the Dow Jones rose by over 500 points, and real estate investment trusts (REITs) gained about 2%. This initial optimism suggests that the commercial real estate market may thrive under Trump 2.0.

Given that property has historically demonstrated its ability to weather political shifts, there’s a strong possibility that it will continue to perform well in Trump’s second term. Despite the uncertainty surrounding future policies and global competition, real estate has a proven track record of resilience. The growth seen in property values and sales during Trump’s first term could set the stage for continued success in his second, offering reasons for the CRE industry to remain optimistic moving forward.