Speculation continues to swirl around the impact of the new presidential administration on matters such as immigration, taxes, and trade. While some of President Donald Trump’s executive orders have already been implemented, others remain in a state of uncertainty.
“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,” remarked Kevin Thorpe, Chief Economist at Cushman & Wakefield, in a recently released “By the Numbers” analysis.
One trend that seems clear is the positive response from financial markets to these executive orders. “On the day those executive orders were signed, the Dow increased by over 500 points,” said Thorpe, noting that the 10-year Treasury experienced a slight decline while the S&P 500 rose by approximately 2%.
Thorpe was careful to caution against drawing too many conclusions from a single day of trading activity. Instead, he pointed to real estate performance metrics from Trump’s first term as a reference point for discussion. Specifically:
– Real estate sales volume reached a record high of $606 billion in 2019.
– Property values increased by 18%.
While acknowledging the strong performance of commercial real estate during Trump’s first term, Thorpe warned that history is not always a reliable predictor of future outcomes. “It’s important to recognize that property has a long history of proving that it can navigate policy changes and continue to perform well,” he explained. “I suspect that will be the case again.”
Many are watching closely to see how Trump’s policies unfold and what lasting impact they may have on commercial property performance.
About the Publisher:
Steve Griffin is based in sunny Palm Harbor, Florida. He’s an accountant by profession and the owner of GRIFFIN Tax (www.griffintax.com) and REVVED Up Accounting (www.revvedupaccounting.com). In addition, Steve founded Madison Avenue Technology (www.madisonave.tech). With a strong passion for commercial real estate, he’s also dedicated to keeping you up to date with the latest industry news.
