Colliers: Iran War To Increase Real Estate Capital Costs, Drive Warehouse Demand

Days into a tenuous ceasefire between the U.S. and Iran, the impacts of the war for commercial real estate are becoming clearer.

Oil prices remained at around $90 per barrel Friday, down from last week but still adding to inflation, which surged to 3.3% in March because of energy prices. Meanwhile, companies are starting to buy supplies in advance and grab industrial space to store materials to hedge against higher transportation prices, according to a new Colliers report.

“While U.S. commercial real estate has limited direct exposure, indirect impacts are being seen mainly in the industrial and retail sectors,” Colliers researchers Steig Seaward and Craig Hurvitz wrote.

The two-week ceasefire that started Tuesday was supposed to temporarily reopen the Strait of Hormuz, through which around one-fifth of the world’s oil travels. But Iran has maintained a chokehold on the narrow strait in the Persian Gulf, frustrating President Donald Trump...