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President Donald Trump and Commercial Property Performance
A great deal of speculation has focused on the impact of the new presidential administration’s impact on everything from immigration to taxes to trade. While some of President Donald Trump’s Executive Orders are already being carried out, others are on the wait-and-see back burner.
“It’s difficult to know the impact of Trump’s orders because some of them are more symbolic, some of them will be challenged in the courts, and most of them lack important details of how they’ll be implemented,” said Cushman & Wakefield Chief Economist Kevin Thorpe in a recently released “By the Numbers” video.
However, one thing that seemed clear was that the financial markets generally reacted positively to the orders. “On the day those Executive Orders were signed, the Dow increased by over 500 points,” Thorpe said, adding that the 10-year Treasury drifted slightly lower while the S&P was up around 2%.
Thorpe acknowledged that reading too much into one day of trading is not a good idea. So, he brought up real estate numbers from Trump’s first term. Specifically:
- Real estate sales volume hit a record high of $606 billion in 2019
- Property values increased by 18%
Thorpe cautioned that while real estate performed well during Trump’s first term, “past does not always prologue.” Still, “it’s important to recognize that property has a long history of proving that it can navigate policy changes and continue to perform well,” Thorpe said. “I suspect that will be the case again.”
- ◦Sale/Acquisition
- ◦Economy
- ◦Policy/Gov't
