3 Things A Trump Presidency Means to CRE

It can happen! - Many never thought Donald Trump would become the 45th president of the United States, yet he won the election. No matter which team you rooted for, Trump will be the President come January 20, 2017. With an eye towards the future, what are the experts saying about how a Trump presidency will impact CRE. Listed below are 3 Things a Trump Presidency Means to CRE. For a comprehensive overview read Lawrence Yun's article published on Forbes.com, Yun is the Chief Economist for the National Association of REALTORS. 

1. Lower Taxes- Look for Trump and a republican congress to move quickly on tax reform. Specifically, on repatriation of profits being held overseas and reduction in the corporate tax rate to 15%. Both will stir economic activity and GDP growth, creating more jobs, which is good for commercial real estate, bad for occupiers as the supply and demand curve will continue to favor owners. Personal income tax rates will also be simplified and depending on how families file their tax returns can put more money in consumers' pockets. For a complete breakdown of Trump's proposed tax reform, read WithumSmith+Brown's audit & tax advisory article on this subject. 
2. Uncertainty- One thing is certain; the markets don't like uncertainty. Many believe that Trump's election will cause considerable concern over banking regulations and trade agreements. After all, "The first shock is that a real estate guy is now the president-elect. I don't think anyone ever believed that was possible or likely," says Yardi's Jack Kern. Most say wait and see, however it is plausible that business growth from tax reform may not be enough to offset the uncertainty in the capital markets. This could have real estate developers sitting on the side lines for a while, pushing the cost of existing inventory even higher. For additional commentary read Bisnow's take on the election and the economic uncertainty surrounding the results.
3. Lawyers will make more money- Where there is change, there are challenges. In business that means you need to consult with legal counsel. Trump campaigned on changing the Affordable Health Care Act (Obama Care), Dodd Frank, trade agreements and eliminate the Consumer Financial Protection Bureau. All of which affect corporate America, read Globe Street's article on this subject to understand how a Trump presidency can impact your legal bills. 

For a copy of Trumps' Contract with the American Voter' 100-day plan, click here