There has been much speculation about how the new presidential administration will impact various aspects of our country, such as immigration, taxes, and trade. While some of President Donald Trump’s Executive Orders have already been put into action, others are still waiting to be seen.
According to Kevin Thorpe, Chief Economist at Cushman & Wakefield in a recent “By the Numbers” video release: “It’s difficult to predict the effects of Trump’s orders because some are more symbolic and may face legal challenges. Additionally, many lack important details on how they will be implemented.”
However, one thing that is clear is that financial markets have generally responded positively to these orders. Thorpe notes that on the day they were signed by Trump,the Dow increased by over 500 points while both S&P and 10-year Treasury rates also saw positive changes.
Thorpe cautions against reading too much into one day of trading but does bring up real estate numbers from Trump’s first term for consideration:
– In 2019 alone,sales volume hit a record high of $606 billion.
– Property values also saw an increaseof18%.
While real estate performed well during this time,Thorpe reminds us notto rely solely on past performance when predicting future outcomes.He states,”it is important to recognize that property has a long historyof navigating policy changesand continuingto perform well.” He believes this trendwill continue underthe current administration as it has in previous ones.
In conclusion,President DonaldTrumphas had an impacton commercial property performance,and only time will tell what furtherchangesmay comeinthis sectorunderhis leadership.The Connect CRE teamwillcontinue monitoring developmentsand providing updatesas needed.
