### The Connection Between Tariffs and Industrial Property
The U.S. tariff situation remains highly unpredictable, with new announcements from the White House emerging frequently. Jason Price, Head of Logistics and Industrial Research at Cushman & Wakefield, described the situation as “fluid,” noting that the size, scope, and timing of the tariffs are still unclear, making it difficult to assess their precise impact.
#### **Beyond Just Trade**
While tariffs significantly affect global trade, Price emphasized that the industrial sector extends beyond seaports and inland ports. Industrial demand is influenced by various factors such as e-commerce, domestic consumer spending, construction materials, and third-party logistics. He indicated that strong market forces are at play that could help offset any negative tariff effects on industrial real estate demand.
#### **Increased Imports**
In January 2025, U.S. maritime ports handled 2.49 million TEUs of imported goods, surpassing the previous record set in January 2022. “Shippers continue to bring goods into the country despite the uncertainty surrounding tariffs,” Price said. This environment of unpredictability has led firms to stockpile goods and materials, which could temporarily boost demand for industrial space.
#### **The Inflation Factor**
Many economists link tariffs to higher inflation. Bond investors anticipate inflation averaging around 2.6% over the next five years—compared to 1.8% before Donald Trump’s election. Price noted that investors view Trump’s policies as more inflationary but within a “reasonably low range.” He emphasized that inflation trends will be closely monitored due to their implications for both real estate occupiers and investors.
As the tariff landscape continues to evolve, its effects on industrial real estate remain a key area of focus for market analysts and investors alike.
