T
he American Dream, touted by President Donald Trump as "unstoppable," may be on shaky ground. Just a month after his triumphant declaration, the threat of tariffs loomed large, casting a shadow over an industry that has been a cornerstone of his success: real estate. Office markets, still reeling from the pandemic's aftermath, had begun to show signs of life as employees returned to their desks. However, economists' revised recession forecasts have sparked concerns that companies may freeze hiring or even resort to layoffs, shrinking office footprints in the process.

    As one industry expert warned, "No one wants to be left holding the bag" – a long lease, an ill-timed investment, or a capital commitment made just before the market turns. Higher tariffs could also stifle new development and renovations, forcing employees to stay away from underutilized office spaces. The uncertainty is palpable, with some experts likening it to "kryptonite for the commercial real-estate market."

    The ripple effects are already being felt in residential real estate, particularly in the luxury sector, where Wall Street's fortunes directly impact investment opportunities. A two-day stock market collapse following the tariff announcement wiped out $6.6 trillion, leading to canceled deals and a pause in investments. While the tariffs were eventually put on hold, the damage may have been done, leaving the industry to navigate treacherous waters.