D
onald Trump's chaotic style as president is familiar to those who knew him in real estate. As a young, brash developer, he was known for his unpredictability and willingness to renegotiate deals after the fact. Manhattan real estate executives and attorneys who worked with him in the 1980s, 1990s, and 2000s described him as mercurial and combative.
Trump's reputation made it difficult for other developers to work with him on joint ventures, as he was seen as prone to "guerilla warfare" when disagreements arose. However, some executives remembered his admirable qualities, such as a "maniacal attention to detail" and punctuality.
Despite a streak of failures, including the bankruptcies of casino resort projects in Atlantic City, Trump's real estate career showed flashes of brilliance. He was known for his ability to visualize complex financial information and make decisions based on instinct rather than thorough analysis.
Trump's presidency has generated optimism in commercial real estate, but this may be fading due to a dizzying month of tariff actions and threats, as well as a reordering of American alliances and policies on the world stage. Tariffs and tax cuts could put upward pressure on long-term interest rates, which could hurt the debt-dependent real estate business.
A senior real estate executive labeled Trump's decision-making on tariffs and tax cuts "kamikaze economics," worrying that prices could rise for critical materials like steel and aluminum, and that the nation's $36 trillion debt would drive up long-term interest rates. The administration's plans to deport millions of immigrants without legal status could also affect labor costs and construction expenses.
A recent sentiment survey by law firm Seyfarth Shaw found that 87% of respondents thought 2025 would be a buoyant year for the real estate business, but this optimism may have shifted negatively due to the turbulence of the past month. The industry's greatest concerns are interest rates, construction costs, and inflation, all of which could be negatively impacted by Trump's policies.
