CRE Could Be a Winner!

Transwestern’s new report highlights that while GDP is expected to drop to negative 2.5% in 2026, the commercial real estate (CRE) sector may attract investors once uncertainties surrounding trade policies clear. The sector’s role as an inflation hedge and its stability could entice investments in the future.

In a significant move, Swiss pharmaceutical company Novartis plans to invest $23 billion over the next five years in U.S. drug research and development, including new facilities and expansions. This will enable the company to produce its key medicines entirely within the U.S., reflecting a strong growth outlook and influenced by the favorable regulatory environment.

This investment supports President Trump’s initiative to bring manufacturing back to the U.S., though the impact of his policies has been mixed. While tariffs aim to reduce reliance on imports and boost domestic factories, challenges remain. Mary O’Brien, CEO of Hapi Homes, has responded to the trade rhetoric by sourcing materials domestically, despite higher costs. Nonetheless, new projects are facing cancellations, and many companies struggle to make timely decisions due to the rapid changes in the market. As Calum Mair from Astrak US noted, the pace of change and uncertainty are holding back growth.

Source: Bisnow.com.

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