Tariffs, Uncertainty, and the CRE Flight to Safety

Welcome back to On The Ground by DealGround your bi-monthly briefing on what's actually happening in CRE, powered by DealGround's data and deal intelligence. Let’s get into it.

Public company CEO’s are pulling guidance. 

When CEO’s won’t call the next quarter, that is not caution, it’s cover. Markets are flying blind, and capital is looking for safety. 

As markets reel and global trade fractures, capital is rotating fast and commercial real estate is taking center stage. 

The Flight to Quality Is Already Underway (1 Min Read)

(Read the full article here)

Every cycle follows the same pattern: fear hits → equities sell off → investors flock to safety. 

You’ve seen it before:

• Dot-com bust

• 9/11

• Great Financial Crisis

• COVID

• 2022-2023 Rate Hikes

Now again…..this time it’s tariffs and macro whiplash. The exit route? Tangible assets.

In a volatile market, you don’t hold firm for “upside” in your investment — you want certainty and equity preservation. Nothing beats safe, cash-flowing, credit tenant leased real estate under these circumstances.

Why Prime NNN Is Where Smart Money is Headed

Single-tenant NNN retail in core markets isn’t just surviving — it’s surging. Why? It offers everything smart money wants right now:

• Bond-like stability

• Zero-to-minimal management

• Predictable, stable income

• Credit tenancy

After the Great Financial Crisis of 2008, trophy NNN assets actually appreciated……not because market sentiment was bullish — but because these assets made financial sense when nothing else did.

Tariffs are jacking up material costs across the board — steel, aluminum, electrical equipment, rare earth imports. New development doesn’t pencil unless rents soar… and tenants can’t afford those rents. That means one thing:

New Supply Will Dwindle 

Meanwhile, existing assets……already built, already leased, already cash flowing.

Who’s In the best spot? - Owners of well-located, bondable NNN properties with strong tenancy. These assets aren’t just safe and secure — they are potential goldmines.

Trophy fast food drive-thru properties are in a class of their own. Entitlements are hard to obtain, rent growth is obvious, and sales volumes are consistently increasing year over year.

DealGround Helps You Surface Deals Before Someone Else Does. 

Don’t wait, hunt.

While others are looking at everything everyone else sees on the listing services we all use, DealGround users are already analyzing:

• Current rents for all assets that have crossed their desks over the years

• Lease / option terms remaining

• Market rent trends to find below market opportunities

Bottom Line

This is shaping up like 2010 all over again — a reset followed by a rush.

• Capital is going to race into CRE

• New quality supply will soon be harder to obtain

• Existing assets will appreciate

Know what you own and know what it’s worth. In this market, clarity is currency.

Be Bold. Be Early.

DealGround.

P.S. Tariff chaos and stock market uncertainty isn’t stopping anytime soon. Your competitors are already hunting. You should be too. The wait is over — sign up today. If you want to get ahead of the curve — now’s the time. Register now for our early access beta.