The Trump administration may have unintentionally thrown a bone to the real estate investment trust (REIT) industry. President Trump’s nomination of Kevin Warsh to be the next chair of the Federal Reserve provides more clarity, and more importantly, predictability to the course of rate cuts in 2026.
Why is that important to REITs? The structure of these businesses certainly benefits from lower interest rates. However, what they need more than rate cuts is rate predictability. It’s why many REITs got hit so hard in 2022 and 2023. It wasn’t just "higher for longer"—it was the lack of clarity on when rate increases would finally stop.
