Houlihan Lokey – Trade Wars: Tariffs and Commercial Real Estate

The main topic of the report concerns the impact of trade wars and tariffs on commercial real estate in the United States.

Key findings include an increase in construction costs due to tariffs on essential building materials such as steel, aluminum, and lumber, leading to project delays and cancellations. Supply chain disruptions due to import restrictions increase costs and cause construction delays. The impact on housing availability, where rising material costs reduce the availability of new homes and increase rental rates. The effect on cross-border investments, where uncertainty in U.S. trade policy prompts investors to reconsider their plans.