It’s not a secret that the U.S. Supreme Court struck down a portion of the imposed tariffs that President Donald Trump had imposed under the International Emergency Economic Powers Act (IEEPA). What’s not so certain is the overall impact on the economy and, by extension, commercial real estate.
In its article, “Tariffs in Flux,” Cushman & Wakefield analysts sought to determine the economic impacts of the Supreme Court ruling and how it could affect commercial real estate.
On the economic side, the repeal of IEEPA tariffs could bring the effective tariff rate on U.S. imports to 7%-9%. Though still high, the reduction will “yield relief for businesses and households,” the article said. The Cushman & Wakefield analysts also indicated that the repeal could encourage the Federal Reserve to possibly reduce interest rates in the second half of 2026, especially as inflation subsides.
However, for commercial real estate investors, the issue isn’t trade exposure as much as it is policy uncertainty and how it could exert pressure on financial conditions, risk premiums or underwriting assumptions. “To date, bond markets have shown some limited repricing, suggesting investors view the ruling as a positive, but incomplete, resolution to trade-related risks,” the write-up said.
The analysts noted additional impacts to CRE, including:
Reduced costs for firms directly and indirectly exposed. These are retailers, manufacturers, and logistics firms that reduced workforces, delayed leases, and relied on other cost-reduction measures to offset tariffs.
Caution with real estate activities. The article explained that “policy transition may lead some firms to proceed more deliberately with site selection, long-term leasing and capital deployment until greater clarity emerges.
Uncertain industrial and retail leasing. While these sectors improved in late 2025, elevated policy uncertainties could heighten downside risks. “The likelihood of forthcoming product-specific tariffs could leave certain firms and industries more susceptible to rising costs than they are currently,” the Cushman & Wakefield analysts said.
Little reprieve for builders. The Supreme Court ruling doesn’t eliminate tariffs on building materials. The article pointed out that in-place tariffs increased prices on steel, aluminum and copper, with building materials inflation accelerating by nearly three percentage points. That, combined with ongoing labor scarcity, means that “CRE construction projects will continue to face elevated costs and timing risks.”
In closing, the article said that the abolishment of the IEEPA tariffs has generated uncertainty over the next steps. New questions about future trade enforcement and fiscal implications remain, driving short-term market volatility.
However, there is an improvement down the road for inflation, growth and leasing activity. Additionally, “businesses and households have demonstrated resilience through past trade policy shifts, and we expect policy uncertainty to gradually diminish over the course of 2026,” the analysts said.
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