President Donald Trump’s business philosophy clearly guides his policy agenda. This is our first president with a lot of real estate and business experience. We must anticipate President Trump’s impact on real estate markets, and on our investments.
Tax reform is a major focus of the administration. Obviously, cutting income taxes should spur short-term economic growth, which is good for real estate. Cutting corporate taxes encourages business formation and business expansion. Any tax reform should also be a win for sectors such as retail and housing. This is all generally good for the real estate industry.
The President’s also clearly focused on reducing business regulation. He’s already lightened regulations in many areas. Dodd–Frank had made it much more difficult, historically, for banks to lend to U.S. middle-market companies.
More middle market, non-bank lenders, such as BDCs and private credit funds, have increased the flow of capital, which is generally good for business. The President wants a return to more traditional flows of capital, which is clearly a win for real estate.
We’re far away from actual policy becoming law. At Resource, we’re focused on examining what these policies are and what their impacts are on the real estate markets and our investments.