A short video by Hannah Hammond discussing how tariffs affect commercial real estate (CRE). She argues tariffs cause short-term pain—higher construction and goods costs, market volatility, and reduced spending/development—while potentially creating long-term opportunity in industrial real estate as manufacturing returns to the U.S. Viewers are invited to comment 'tariffs' for help.
Chapters
Tariffs, are they good or bad for commercial real estate? Honestly, it really depends. It depends on the asset class, it depends on the location, and it also depends on the timeline that you're talking about. In my opinion, tariffs are going to continue to cause some pain in the short term because obviously cost of goods goes up, cost of construction goes up. There's a lot of volatility in the market, some uncertainty, some fear. And when people are fearful, they pull back. They pull back on spending, they pull back on development, they pull back on investments, they. They pull back on growing their businesses. So in the short term, tariffs are going to hurt. However, in the long term, especially in the industrial space, bringing back manufacturing to the United States is going to cause a huge demand increase for these large manufacturing warehouses. So the answer is tariffs are good and bad. Every action has an equal and opposite reaction, and it's just a matter of shifting your focus into the asset classes or the sectors where the greatest opportunity lies from the impacts of these tariffs. If you want help navigating these tariffs in the CRE market, comment the word tariffs below.