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ommercial real estate professionals were optimistic about a comeback under President Trump, but that rebound is now in jeopardy. Sales of hotels and industrial warehouses plummeted in April, according to MSCI, with declines of 52% and 34%, respectively.

    Spencer Levine, president of RAL, a family-owned commercial real estate investment firm, had expected a promising year for property dealmaking. However, he now believes that 2025 is turning into a bust due to the lack of properties on the market. "We have definitely seen a slowdown in transactions," Levine said.

    The first quarter of 2025 saw $88.4 billion in commercial real estate sales across the country, a 14% increase from the same period last year. However, April's sales activity was significantly lower, with only $26.1 billion in commercial property sold nationally, equal to the same month a year ago.

    Experts attribute the decline to President Trump's tariffs and trade policies, which have disrupted global trade and affected demand for logistics and storage spaces. The hotel sector has also been impacted by Trump's reshuffling of global alliances, leading to reduced business travel and tourism.

    "This increase in uncertainty will increase the disconnect between buyers and sellers," said Jim Costello, co-head of MSCI's real assets research team. "If I'm buying a property, I want to underwrite every worst-case scenario."

    The optimism about a rebound that started the year has faded, with some executives now focusing on refinancing deals rather than new sales. Fortress Investment Group's Spencer Garfield sees an opportunity in this market, citing a high demand for loans and a narrowing competition among lenders.