Trump's tariffs: What's the impact on CRE?

Commercial real estate is being seen as a solid and tangible haven for investment in an otherwise unpredictable and challenging marketplace."
Nick Dunn, Head of Commercial

Global economic growth is set to slow to a 'modest' 2.9% this year and 2026 from 3.3% in 2024 - largely because of the US President Donald Trump's US tariffs.

The gloomy outlook from the Organisation for Economic Co-operation and Development (OECD) has warned that 'weakened economic prospects will be felt around the world, with almost no exception' including in the UK.

This follows the International Monetary Fund downgrading its economic forecasts for the UK – and a 48.2 PMI (Purchasing Managers’ Index) reading last month - the lowest since 2022 – all evidence of the disastrous economic fall-out of Trump’s actions.

UK businesses are feeling the blow of the higher export tariffs to the US as well as the disruption to their global supply chains.

So, what does that mean for the Commercial sector?

Investment is happening in Norwich with the Anglia Square scheme, as I discussed in my last article. 

New business parks such as Broadland Gate are almost full, and infrastructure works are well advanced at the new Broadway Enterprise Park, with further Commercial development to start on site shortly. 

All of this points to a resilient local marketplace.

Interest rates were cut earlier this month - the fourth time since August 2024 - which is an incentive for Commercial investors. 

Indeed, we have seen a noticeable upsurge in demand for well-let Commercial property assets, which suggests Commercial real estate is being seen as a solid and tangible haven for investment in an otherwise unpredictable and challenging marketplace. 

While uncertainty prevails, there are still some decent opportunities out there if you know where to find them.

Nick Dunn, Head of Commercial, based in our Norwich office, can be contacted on 01603 629871.

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