Predictability has been in short supply for global investors. The US Supreme Court’s ruling that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) exceeded presidential authority landed as a rare dose of clarity for commercial real estate – especially for owners, developers and occupiers exposed to cross‑border supply chains.
Legal experts viewed the decision as a curb on unilateral tariff moves from the White House, shifting the balance back toward Congress on trade policy.
For commercial property players, the immediate question is whether this change would stick long enough to influence build costs, leasing decisions and capital allocation.
“The decision restores a measure of predictability to U.S. trade policy – easing pressure on supply chains and reducing costs for businesses,” said Mark Rose, chair and CEO of Avison Young.
“For commercial real estate, this may temper some of the urgency surrounding reshoring initiatives, but it simultaneously supports broader economic stability, which strengthens demand across industrial, retail, and office sectors.”
Tariff rollback and the cost of building
Rose said the rollback “offers meaningful relief to retailers and developers alike by lowering import and construction costs, improving margins, restoring consumer confidence, and reigniting investment.”
He added that the ruling underscored how “global trade policy doesn’t just shape international markets – it directly affects Main Street.”
“As of the second quarter of 2025, CBRE estimates that about 23 million square feet of office conversions are underway, with another 58 million square feet announced, but not yet started, for a total of approximately 81 million square feet,” Xander Snyder, senior commercial real estate economist for First American, told Mortgage Professional America.
“By comparison, 52 million square feet of office space is currently under construction.
Construction and materials inflation have complicated project feasibility and debt coverage across multiple markets. In past roundtables, commercial specialists highlighted how a clearer macro backdrop, combined with stable funding costs, typically encouraged developers to restart shelved projects and pushed institutional investors back toward income‑producing assets.
Broader implications for lenders and brokers
The decision also sat against a wider reshaping of commercial lending. In other markets, industry leaders pointed to a growing sense of optimism that the commercial lending space for brokers [was] poised for significant further growth, with broker share of commercial loans still leaving a substantial untapped opportunity.
Rose cautioned that policy clarity would remain critical. “In this environment, clarity in policy remains a vital foundation for long term planning and investment,” he said.
For commercial real estate professionals, the ruling does not remove cyclical risks – but it reduced one important source of uncertainty and, for now, tilted the balance back toward planning rather than defensive delay.
Source: “Tariff decision good news for commercial real estate sector, CEO says”
