At this point, there’s little surprise that the increased tariffs scheduled to start today will negatively impact commercial real estate. CBRE, CommercialEdge, and S&P Global Ratings have all projected this.
There are obvious concerns such as increased construction costs, additional financial pressure on retailers or multifamily tenants from higher business or living expenses.
“For office conversions, tariffs may add another layer of complexity and cost, potentially making them a financial no-go,” Roger Yang, U.S. industry leader in building, construction, and real estate for KPMG U.S., told GlobeSt.com. “In multifamily housing, tariffs on steel and lumber, coupled with skyrocketing insurance costs from natural disasters in hotspots like the Sunbelt, are a double whammy that can significantly inflate overall project costs.”
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