How will the new administration impact the commercial real estate sector?
WILLIAM AHERN, REAL ESTATE PARTNER
“While it is still early to draw definitive conclusions, President-Elect Trump has consistently advocated for various tax incentives that promote investment in commercial real estate. Key provisions include maintaining a lower capital gains tax rate, preserving 1031 exchanges, and extending the Opportunity Zone program, which is nearing its conclusion. While interest rates remain a critical factor for investors when deciding whether to invest in real estate or explore other asset classes, these tax efficiencies supported by Trump encourage owners of appreciated property to transact instead of holding long term due to the cost of selling in a higher tax environment.”
SANDY JACOBSON, REAL ESTATE PARTNER
“The overarching trend toward deregulation in the Trump administration bodes well for commercial real estate. We are likely to see a rollback of certain housing-related regulations and policies, lower interest rates, and a low corporate tax rate. These positive effects should help outweigh the risks of tariffs that could cause more inflation and deportation that could shrink the workforce and raise labor costs. Overall, there is optimism that there will be more commercial real estate transaction volume in the coming months.”
ALAIN R'BIBO, REAL ESTATE PARTNER
“Real estate is hyper-localized, which means we are unlikely to see many direct regulatory impacts on commercial real estate from the Trump Administration. However, I do see the real estate sector welcoming Trump’s overall pro-business outlook, which has had the effect of improving market sentiment and bringing players off the sidelines.”
