Tariffs imposed on goods shipped to the United States from other countries could affect the cost of customizing spaces for retail tenants and result in longer build-outs, according to Branch Properties Partner Brett Horowitz.
A good chunk of Branch's business right now is with Publix Super Markets, for which the Atlanta-based firm is developing several new locations across the Sun Belt. While Publix has discussed the potential fallout from tariffs, the company told Branch that because 80% of what it sells is produced domestically, it's not overly worried, Horowitz said.
"We're probably more concerned about it with tenants building out ... their stores or their kitchens and where the equipment's actually coming from," Horowitz said in an interview. Also, taxes on imported building materials could delay projects and result in higher costs, he said.
President Donald Trump last month imposed tariffs, including an across-the-board 10% tax on goods imported to the United States. Since then, his tariff policy shifts and court rulings this week regarding the taxes have affected financial markets and U.S. consumer and business confidence.
Tariff concerns aside, Horowitz said Branch is expanding its presence across the Southeast. Watch the video to hear where the company just bought land for a new Publix-anchored shopping center.