Real estate implications of a Trump victory
21 November 2016 | Max Swango
In this article, Max Swango looks at what a Trump presidency will mean for the US economy and subsequent implications for real estate markets.
This commentary takes a brief look at what some of the real estate implications might be for US real estate markets. Clarity on the substance and priority of policies is unlikely to occur until Trump’s first 100 days in office in H1 2017. Even then, given the checks and balances in the US legislative system, and the fact that the Republicans hold a slim majority in the US Senate, it is unlikely that Trump would get all of his proposals passed into law in their current form.
Therefore, given that context, we do not expect to change our general approach to real estate investing in the US or elsewhere. Moreover, real estate is a long-term asset class based on relatively stable income derived from relatively long-term contractual leases. Thus,any changes that might occur as a result of policy shifts are really at the margin.
At this advanced stage of the economic and real estate cycle, we have already taken steps to position US real estate portfolios in preparedness for the potential of more difficult times should they emerge. Our focus continues to be on real estate fundamentals: identifying sectors, markets and assets that we believe have the potential to deliver sustainable outperformance over the long term.