As I penned this column, we were celebrating Presidents’ Day, a winter holiday originally meant to honor Washington and Lincoln’s birthdays but now mostly a day off from work and school.
When I was a kid, February was a rapid-fire month of celebrations: Lincoln’s birthday on the 12th, Valentine’s Day on the 14th, and Washington’s birthday on the 22nd. Over time, two of these events have merged into one, but this year, a well-placed Friday-to-Monday stretch created a four-day weekend for many local school kids.
Reflecting on presidential legacies got me thinking. Beyond politics, what decisions have truly shaped the commercial real estate landscape? From massive land acquisitions to economic policies that influenced leasing, investing, and development, presidential decisions have had a lasting impact on how, where, and why commercial real estate thrives.
So, in honor of U.S. presidents, here are 10 of the most influential moves that changed our industry forever.
Louisiana Purchase (1803)
With one signature, Thomas Jefferson doubled the size of the United States, opening vast territories to expansion. This set the stage for land speculation, western development, and the eventual rise of cities that became hubs for commerce and industry. Imagine what CRE looked like before places like St. Louis, Denver, and New Orleans became economic powerhouses.
Panama Canal (1914)
Championed by Theodore Roosevelt, the canal cut transit time between the Atlantic and Pacific oceans, revolutionizing global trade and transformed U.S. port cities into industrial and logistics hubs.
Today’s industrial real estate boom — think massive distribution centers near ports — owes much to this early infrastructure investment.
Smoot-Hawley Tariff Act (1930)
Passed under President Hoover, this protectionist tariff worsened the Great Depression by stifling trade.
The ripple effects devastated commercial real estate, as businesses closed, industrial demand plummeted and office vacancies soared.
A lesson learned: real estate is highly sensitive to trade policy and economic shifts.
Small Business Administration (1953)
By providing federally backed loans to small businesses, the SBA made it easier for entrepreneurs to buy office and industrial spaces.
Countless shopping centers, strip malls and local office buildings have been filled by SBA-assisted businesses over the years, fueling demand for small-bay industrial, retail, and professional space.
Nixon opens China (1972)
When Richard Nixon re-established diplomatic and trade relations with China, the move triggered decades of economic transformation.
Factories in the U.S. closed as manufacturing shifted overseas, reshaping industrial real estate.
Warehouse and logistics space replaced manufacturing plants, and West Coast port cities like Los Angeles, Long Beach, and Seattle became critical import hubs.
Reagan’s 1986 Tax Reform Act
This landmark tax overhaul eliminated many real estate tax shelters and changed depreciation rules, altering how investors approached CRE.
The shift led to a market downturn in the late 1980s, followed by a new focus on long-term, sustainable investing strategies.
Investors learned that tax policy alone shouldn’t dictate real estate decisions.
Enterprise Zones (1980s to now)
Various presidents have championed enterprise zones, so called designated areas offering tax breaks and incentives to encourage business investment in struggling regions.
These policies, from Reagan’s initiatives to the Opportunity Zones under Trump, have fueled development in underutilized areas, sparking growth in commercial real estate.
The Affordable Care Act (2010)
While primarily a healthcare law, the act signed by President Barack Obama made a profound impact on commercial real estate.
The expansion of medical facilities, urgent care centers, and specialty clinics surged, increasing demand for medical office space.
Meanwhile, some businesses downsized their footprints in response to new insurance mandates. When selling real estate assets, a 3.8% tax was imposed as well.
Trump’s tariffs (2018 to now)
Trade wars with China and other nations led to increased manufacturing costs and supply chain disruptions.
However, these policies also triggered a renewed push for domestic production, fueling demand for industrial space and reshoring manufacturing facilities, a trend that continues today.
COVID lockdowns (2020, Trump & Biden)
Perhaps no recent event has reshaped commercial real estate more than the COVID-19 lockdowns.
Office vacancies skyrocketed as remote work took hold, retail faced massive upheavals, and industrial real estate boomed with e-commerce demand.
The long-term effects are still unfolding, but one thing is certain, CRE will never look the same again.
Presidents’ decisions don’t just influence policy, they reshape the very fabric of our cities, our businesses and the commercial real estate from which we operate. From land acquisitions to tax laws to trade policies, every move in Washington sends ripples through our industry.
Looking ahead, the question remains: What policy decisions today will shape the next era of commercial real estate? If history is any guide, the effects will be felt for decades to come.
Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104.