What Commercial Real Estate Is Best to Invest in During Trade Tariff Wars?

When global trade tensions rise and tariff wars erupt between major economies, investors across the board begin to reassess their strategies. For those in the commercial real estate (CRE) space, it's essential to understand how shifting economic policies can affect asset classes and which types of properties offer the best protection and potential upside. So, what commercial real estate is best to invest in during trade tariff wars? Let’s break it down.

Understanding the Impact of Trade Tariffs on Commercial Real Estate

Trade tariffs increase the cost of imported goods, often leading to higher prices for raw materials, construction equipment, and finished goods. This economic uncertainty can disrupt supply chains, manufacturing output, and even employment in affected sectors. As a result, not all CRE assets respond the same way during a tariff war.

Investors should look for commercial property types that are either resilient to global economic shifts or strategically positioned to benefit from new supply chain dynamics.

1. Industrial Real Estate – Especially Domestic Warehousing and Logistics.

Why It’s a Strong Play:

Trade wars often result in companies rethinking their global supply chains. Some bring operations closer to home—what's known as reshoring—or diversify their supplier base. This increases demand for distribution centers, fulfillment hubs, and last-mile logistics facilities.

• E-commerce continues to grow regardless of tariffs.

• Warehousing needs spike due to companies stockpiling goods in anticipation of new tariffs.

• Domestic manufacturing facilities may expand, requiring more industrial space.

  
  

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2. Self-Storage Facilities

Why It’s Resilient:

Self-storage performs well even during economic uncertainty. In times of volatility, both businesses and consumers downsize, relocate, or need additional storage for inventory or personal items.

• Low overhead and operating costs

• Steady cash flow, even during economic shifts

• High adaptability for different market conditions

  
  

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3. Multifamily Properties – Workforce Housing

Why It’s Worth Considering:

Trade wars can slow down economic growth, leading to tighter personal budgets and higher demand for affordable housing. Class B and C multifamily properties, often referred to as workforce housing, tend to perform well in these conditions.

• High occupancy rates even during economic downturns

• Steady rent demand from middle-income tenants

• Limited impact from global trade policies

  
  

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4. Data Centers and Technology Infrastructure

Why It’s Strategic:

While not directly tied to trade wars, data center investments are insulated from many global trade factors. The world’s growing reliance on cloud services, remote work, and streaming continues to drive demand.

• Long-term leases with major tech tenants

• Limited sensitivity to global goods movement

• Rapid digital transformation supports growth

  
  

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What to Avoid During Trade Tariff Wars

Some commercial real estate sectors are more vulnerable during trade conflicts:

• Retail: Especially properties dependent on imported goods or consumer discretionary spending.

• Office: Particularly if tied to international trade, manufacturing, or uncertain economic climates.

• Hospitality: Global economic friction can reduce business travel and international tourism.

  
  

Key Takeaway: Diversify With Resilience in Mind

In times of economic uncertainty—like trade tariff wars—savvy investors turn to commercial real estate assets that offer stability, strong demand drivers, and long-term growth potential. Focus on sectors that are domestically reliant, e-commerce friendly, and serve essential needs.

Whether you're a seasoned CRE investor or exploring new opportunities, understanding the macroeconomic impact of trade policies will help you make smarter, more resilient investment decisions.

Want to learn more about investing in recession-resistant commercial properties? Connect with our experts at Commercial Partners of Texas for a free consultation.