Cushman & Wakefield’s recent webinar, Trump 2.0: Implications for Property, provided expert analysis on how recent shifts in economic policies might influence the real estate market and overall economy. Our Global Think Tank identified several important considerations for investors and stakeholders navigating the evolving landscape, including:
- Economic Uncertainty and Stagflation: A short-term economic slowdown combined with higher inflation is anticipated in 2025.
- Rising Construction Costs: Tariffs are likely to increase construction material expenses by 5-7%, potentially benefiting existing property owners due to slower new development.
- Federal Employment Cuts: Reduced federal workforce expected to impact office space demand, particularly in the DC area.
- Interest Rate Volatility: Significant fluctuations in interest rates are expected, with a general stabilization around 4-4.5% for the 10-year Treasury.
- Industrial and Retail Sectors: Tariffs and weaker consumer demand could temporarily affect occupancy rates, but resilience is anticipated.
- Capital Markets Outlook: Short-term cautious investment climate evolving into a gradual recovery, driven by demand for stable income assets.
- Long-Term CRE Investment Strength: Commercial real estate remains an attractive asset class, offering diversification and protection against inflation.
- GSE Privatization: Possible privatization of government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac is unlikely immediately, but multifamily lending remains strong.
Explore detailed insights and data shared during our expert-led session:
For questions or additional insights, please connect directly with our team of experts.