Here’s How the Next President Could Reshape Industrial Real Estate

While Vice President Kamala Harris and former President Donald Trump have proposed vastly different policy platforms for the economy, foreign policy, and energy ahead of the general election in November, their proposals—if implemented—will be consequential for industrial real estate in the country.

According to a new analysis by Savills, industrial landlords, users, and the overall shape of the sector could be significantly affected by the outcome of the election. Savills found that three policy decisions could be pivotal for the sector including tariffs on China, electric vehicles (EVs), and energy production.

The tariffs on Chinese products put in place during the Trump administration amounted to approximately $380 billion and were largely kept in place by the Biden administration. They are expected to increase by an additional $18 billion over the next two years. Both Trump and Harris have supported additional tariffs, prompting companies to stockpile inventory ahead of expected increases. China-focused third-party logistics firms have also been increasing their footprints in port markets, Savills found. However, the firm noted that further tariff increases may end up slowing consumer spending as they could lead to higher prices, ultimately diminishing demand for warehouses.

“In the longer term, these protectionist policies could accelerate domestic manufacturing, particularly in Southeast and Midwest hubs,” Savills said. “This growth extends beyond factories to the broader ecosystem of suppliers, all of which need warehouse and distribution space. However, port markets may face a slowdown as the flow of goods shifts and imports decrease as a share of consumption, though this shift will take years.”

Beyond trade policies, the candidates’ stances on energy production also hold significant implications for the industrial sector. Savills concluded that Harris and Trump’s policy proposals around energy production, which would prioritize either oil and gas or renewables, could affect the industrial sector in different ways.

A presidential term under Harris would presumably benefit the manufacturing hubs in states like Texas, Georgia, New Mexico, Ohio, and Tennessee, where wind turbines, solar panels, and renewable technologies are assembled. A Trump presidency, on the other hand, may benefit oil and gas markets like Dallas, lower energy costs, and boost industrial leasing in mining hubs.

“The upcoming election will have a lasting impact on U.S. industrial markets, with tariffs, EV growth, and energy policies all playing critical roles,” Savills said. “Whether through protectionist trade measures, evolving EV incentives, or shifts in energy strategy, the next administration’s policies will shape the future landscape of industrial production, supply chains, and markets.”