The First 100 Days
The Trump administration is expected to have an immediate impact on the multifamily real estate sector in the first half of 2017. The President campaigned on a platform of lower taxes and increased spending, and in his first week has shown a willingness to move quickly on his campaign promises.
That has commercial real estate executives feeling good about investment returns this year. Industrial real estate properties are likely to get the biggest boost from the new administration, thanks to the expectation that Trump will commit significant federal funds to infrastructure spending. But multifamily buildings are expected to do almost as well under the new president, providing a welcome source of stability in what will likely otherwise be a volatile year.
In addition to these positive developments, interest rates are expected to remain at or near historic lows throughout the year, providing further stimulus to what may already be a pro-growth environment. Meanwhile, many existing loans are set to mature this year, which will add to demand for refinancing and lending services. Short-term bridge loans that close quickly, such as those Wilshire offers, should help real estate investors position themselves to take advantage of the increased demand for multifamily and other income producing property in what may be an increasingly competitive market.
While the transition between political parties and administrations may give rise to some market volatility, any political uncertainty could help play into the hands of commercial real estate investors, with the US commercial sector continuing to be viewed as a relative safe haven amid otherwise turbulent markets. As a result, expect U.S. real estate to remain a popular investment choice for domestic and international investors.
The new administration has also stated its intent to drastically cut back on federal regulations. All of that should be good news for builders, who will have more free reign to break ground and will face less red tape. That could spur a jump in new construction while accelerating projects already under construction, providing even more investment opportunities in the near future.