Donald Trump's inauguration on Jan. 20 “brought into the executive branch of US government a pro-business, pro-growth, tax-averse real estate developer,” according to Akerman's report. “And yet discerning what comes next has been difficult.”

Certainly, the outcome of the election gave the real estate community a great deal to be positive about. Post-election, 64% of survey respondents told Akerman that a Trump presidency would likely have a moderately positive or significantly positive impact on the real estate sector. Separately, 53% of Akerman survey respondents said they were either “marginally more optimistic” or “significantly more optimistic” about the industry's outlook this year compared to 2016.

Take the new administration's stance on taxes, for instance. “Nowhere is the real estate sector more expectant than in the realm of likely changes to the federal tax code,” the report states.

Akerman's report points to the “laser-like focus” the sector has trained on President Trump's proposal to slash corporate taxes from the present rate of 35% to 15%. “In effect, the 15% proposal would be 5% less than the current capital gains rate enjoyed by the real estate sector.”

Additionally, Trump's tax plan would allow companies to immediately write off capital investment expenses, as opposed to writing them off over time. “This onetime immediate investment write-off, if enacted into law, could combine like a powerful one-two punch for real estate companies to knock taxes down even further,” according to Akerman's report. The proposed immediate deduction for investment, when combined with the current tax code's deduction for interest on that debt, would allow real estate companies to “significantly screen themselves from tax liabilities on earned income,” the report states.

There's plenty more in the pipeline: a rollback of Dodd-Frank regulations on lenders, a partial privatization of the nation's infrastructure and the repatriation of some $2.6 trillion in cash overseas. “We're all thinking it's probably going to be favorable for real estate,” says Richard Bezold, chair of Akerman's real estate practice, about business in 2017 under the current administration. “The business community is waiting to see what changes will come.”

However, Bezold acknowledges that forecasting what a new president will do for the economy won't be easy. “We're all trying to predict the unpredictable,” he says.

MIAMI—An early song from Talking Heads advised listeners, “Don't worry about the government.” It's not advice that would carry much weight with today's investors and lenders, who cited government-related uncertainties as the most significant factors affecting commercial real estate in Akerman LLP's eighth annual report on the sector.

“Uncertainty in economic conditions” was cited by 27% of respondents going into the November elections, followed by “federal gridlock and uncertainty of government policy” (24%) and “interest rate uncertainty” (14%). Akerman's report notes that these factors easily outranked other concerns, including “rising purchase prices or reduction in cap rates” (12% of respondents), “availability of institutional credit” (9%), “decreased foreign investment in the US” and “need for new infrastructure” (each with 4%) and the “availability of equity and mezzanine financing” (3%).

“Indeed, it might be said that prior to the election, 67% of respondents to the annual Akerman Survey were significantly concerned, at its broadest circumference, about uncertainties generated by the intersection of federal government–level policy making (or the lack thereof) and the effect of these actions/inactions upon the economy,” the report states.

Since then, the Federal Reserve has provided greater clarity on interest rates, yet much else remains unclear. Moreover, with 45% of survey respondents citing low interest rates as the main factor underpinning their confidence in CRE, the certain knowledge that the Fed will be raising rates more frequently this year and next creates its own uncertainty in terms of predicting the impact.

Donald Trump's inauguration on Jan. 20 “brought into the executive branch of US government a pro-business, pro-growth, tax-averse real estate developer,” according to Akerman's report. “And yet discerning what comes next has been difficult.”

Certainly, the outcome of the election gave the real estate community a great deal to be positive about. Post-election, 64% of survey respondents told Akerman that a Trump presidency would likely have a moderately positive or significantly positive impact on the real estate sector. Separately, 53% of Akerman survey respondents said they were either “marginally more optimistic” or “significantly more optimistic” about the industry's outlook this year compared to 2016.

Take the new administration's stance on taxes, for instance. “Nowhere is the real estate sector more expectant than in the realm of likely changes to the federal tax code,” the report states.

Akerman's report points to the “laser-like focus” the sector has trained on President Trump's proposal to slash corporate taxes from the present rate of 35% to 15%. “In effect, the 15% proposal would be 5% less than the current capital gains rate enjoyed by the real estate sector.”

Additionally, Trump's tax plan would allow companies to immediately write off capital investment expenses, as opposed to writing them off over time. “This onetime immediate investment write-off, if enacted into law, could combine like a powerful one-two punch for real estate companies to knock taxes down even further,” according to Akerman's report. The proposed immediate deduction for investment, when combined with the current tax code's deduction for interest on that debt, would allow real estate companies to “significantly screen themselves from tax liabilities on earned income,” the report states.

There's plenty more in the pipeline: a rollback of Dodd-Frank regulations on lenders, a partial privatization of the nation's infrastructure and the repatriation of some $2.6 trillion in cash overseas. “We're all thinking it's probably going to be favorable for real estate,” says Richard Bezold, chair of Akerman's real estate practice, about business in 2017 under the current administration. “The business community is waiting to see what changes will come.”

However, Bezold acknowledges that forecasting what a new president will do for the economy won't be easy. “We're all trying to predict the unpredictable,” he says.