CRE Leaders Cite Prudent Management of Possible Tariff Risks 

The current federal administration has moved toward a protectionist strategy for American trade, imposing often-steep tariffs on imported goods. For commercial real estate, these may have an impact on the cost of development, given that consumer products aren’t the only categories affected. Adding an element of volatility and uncertainty has been shifting timelines on when the tariffs will take effect—as well as adjustments in the tariff rates. As part of our 2025 Leadership Series, we asked key industry figures to weigh in on the implications of the tariff regime. Below, you’ll read insights from Mitchell Hunter; president of Trimont; Bob Hart, president and CEO of TruAmerica Multifamily; and Anthony Chereso, president and CEO of The Inland Real Estate Companies, LLC.  

Are tariffs prompting changes in real estate investment strategies and how are you addressing client concerns about tariff-related portfolio risks? 

Mitchell Hunter: Tariffs historically have translated to higher prices. With the recent increase in tariffs and associated uptick in inflation, some consumer segments are signaling greater caution which is translating into more conservative spending patterns. This dynamic has impacted lower-end hotels where average daily rates have dropped. It is also influencing distribution space as there has been a slowdown in many markets, mainly those located in the western portion of the U.S.. 

As far as tariff-related risk, because tariffs remain in a state of fluctuation, it is challenging to fully gauge their influence currently. At the same point, our clients are taking prudent steps to manage the possible risks. Those mitigation strategies start with heightened surveillance of the current environment. Additional tactics include holding adding liquidity, utilizing diversification, and enhanced focus on maximized operation performance. 

Bob Hart: Tariffs can indirectly influence construction costs, supply chain timelines, and operating expenses. TruAmerica factors those risks into our value-add underwriting and proactively mitigates exposure through vendor diversification and our scale across 60,000+ multifamily units. Fortunately, our core business in stabilized workforce housing is less sensitive to these fluctuations compared to new development. 

Anthony Chereso: We are rethinking how we operate amid this tariff-driven uncertainty. Rather than reacting impulsively, we are reviewing existing investments, focusing on tenant credit quality, and seeking clarity when deploying our investment capital. 

When it comes to our development projects, for example, we’re assessing near-term cost inflation, delivery delays, and financial buffers. There’s also a growing tactical tilt in the industry toward repositioning existing assets instead of initiating expensive new construction; this tactic produces quicker development cycles and lower exposure to tariff shocks. 

How are you thinking about tariffs in the context of long-term capital allocation and corporate strategy? 

Anthony Chereso: We are also focusing on defensive sectors like healthcare (Medical Office Buildings), self-storage, student housing, and necessity retail. Tariffs aren’t being ignored, they’re being worked into models and underwriting rather than inciting panic