T
he new Presidential administration is expected to have a positive impact on commercial real estate, particularly for investors, owners, and developers. Many see a pro-business environment ahead, with potential favorable policies supporting growth. However, tariffs could affect the industrial sector and retail operations, but might also encourage more U.S. industrial development.

    Investors are looking at several key areas: office space, where well-located Class A and B+ offices may need updates; industrial space, particularly around transportation hubs like ports, airports, and rail; and retail, with community and grocery-anchored centers performing well. Multifamily demand remains strong in Texas cities like Dallas, Houston, and Austin.

    Recent interest rate cuts have positively impacted investor sentiment, leading to increased transactions and a narrowing of the bid/ask spread between buyers and sellers. The election results have created a more optimistic outlook for business overall, with some companies expanding their space requirements. However, concerns about rising Treasury yields have dampened momentum.

    Investors should keep an eye on infrastructure challenges, particularly power availability, as well as municipalities becoming more aggressive in raising property assessments to cover budget shortfalls. Despite recent shifts in Treasury yields, there is optimism in the market, and investors can expect increased activity in early 2025 as the market stabilizes.

    To navigate the changing landscape, investors should focus on market fundamentals – understanding supply and demand trends. They should look for opportunities where market dislocation has created strong buying opportunities, even in markets where values are temporarily down. A focus on areas with long-term growth potential and lower risk will continue to yield positive returns over time.