Trump 2.0: The First 100 Days | United States

Tax Cuts & Jobs Act Near-term Growth to Benefit

Impact on CRE

• The Tax Cuts and Jobs Act (TCJA) was first passed during Trump’s first term and went into effect January 2018. • The economy responded well. Real GDP grew by 3% in 2018 and 2.2 million net new jobs were created. Investment was also higher as a result. • It was a different time, but it is worth noting property also performed well during that period. Absorption was strong across most sectors and capital markets sales volume went on to set a pre-pandemic record in 2019. • The TCJA is set to expire at the end of 2025, but lawmakers are working diligently to extend it. • It won’t provide the same boost to the economy as the first go because it is more of an extension versus a cut. It is expected to add 0.3% to real GDP growth in 2026 and 2027.

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7

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1

0

-1

TCJA Effective Jan 1, 2018

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2016Q1

2016Q2

2016Q3

2016Q4

2017Q1

2017Q2

2017Q3

2017Q4

2018Q1

2018Q2

2018Q3

2018Q4

2019Q1

2019Q2

2019Q3

2019Q4

Real GDP (YOY % Change)

Real Investment (YOY)

Source: Congressional Budget Office

CONTENTS

CONTENTS

Cushman & Wakefield