Flurry of new legislation including OBBBA, GENIUS Act, and aggressive tariff policies creates portfolio rebalancing opportunities amid market volatility
NEW YORK, NY / ACCESS Newswire / July 31, 2025 / The first half of 2025 has delivered an unprecedented wave of legislative changes that are fundamentally reshaping investment strategies across asset classes. The passage of the GENIUS Act on July 18, 2025-the first major cryptocurrency legislation in U.S. history-combined with the sweeping One Big Beautiful Bill Act (OBBBA) signed on July 4, and President Trump's aggressive tariff implementation beginning with 25% tariffs on Canada and Mexico and 10% on China, has created both opportunity and uncertainty across traditional and alternative investment markets.
"We're witnessing a once-in-a-generation convergence of policy changes that are forcing institutional investors to completely rethink their allocation strategies," said Marious Sjulsen, Chief Investment Officer. "While headlines chase crypto euphoria and tariff disruptions, the real opportunity is in the assets everyone else is overlooking."
The New Legislative Reality
The legislative activity has been nothing short of historic. The Senate voted 68-30 to pass the GENIUS Act, establishing rules for the roughly $238 billion stablecoin market and creating a clearer framework for banks, companies and other entities to issue digital currencies. This crypto-friendly legislation has contributed to Bitcoin and other major cryptocurrencies hitting all-time highs, with the crypto market reaching a record $4 trillion soon after the vote.
Meanwhile, tariff announcements have increased economic policy uncertainty to its highest point since the beginning of the COVID-19 pandemic, with the Economic Policy Uncertainty Index doubling in value from the start of January. The scale of the announcements on April 2nd exceeded economist and market expectations, sending the S&P 500 down over 10% in the two days immediately following.
"The policy shifts we're seeing are creating massive dislocations across asset classes," noted Charles Clinton, CEO. "Smart investors aren't chasing shiny objects. They're positioning where fundamentals meet opportunity. That intersection is clearly in commercial real estate."
Investor Behavior Amid Policy Turbulence
Bitcoin hit a record high of $123,153.22 on July 14th, crossing $120,000 for the first time in history. The GENIUS Act's passage has legitimized stablecoins, with major financial institutions scrambling to enter the market.
But the tariff reality is harsh: companies importing goods face immediate cost increases that historically have been passed to consumers once price levels stabilize. For now, however, companies have been absorbing the tariffs while waiting to see what tariff rates will level at. Technology, materials, energy and industrial sectors-with foreign revenue exposure as high as 57%-are particularly vulnerable to margin compression.
Commercial Real Estate: The Contrarian Play
While markets chase crypto euphoria and panic over tariff disruptions, commercial real estate presents a compelling contrarian opportunity. The sector combines favorable valuations, robust policy tailwinds, and fundamental recovery indicators-a rare trifecta in today's volatile environment.
Bottom-Cycle Valuations: Industry experts believe values hit the bottom at the end of 2024 after falling 20%-40% from peak levels. At the same time, core transactions traded at 20% to 25% discounts to 2021 valuations, which created compelling entry points for patient capital.
Legislative Rocket Fuel: The OBBBA delivers substantial benefits. 100% bonus depreciation is permanently restored for property acquired and placed in service after January 19, 2025. The Qualified Opportunity Zone program becomes permanent, with enhanced rural investment benefits offering 30% basis step-ups after five years.
"We're seeing institutional capital flood toward real assets with built-in tax advantages and defensive characteristics," said Sjulsen. "While everyone's focused on Bitcoin hitting new highs, we're buying cash-flowing properties at generational discounts with permanent tax benefits."
Market Dislocations Create Institutional Opportunities
The legislative whirlwind has created significant market dislocations favoring patient capital in real assets. Since Q4 2024, commercial real estate activity has increased-lending standards are loosening, price discovery is recovering, and asset write-downs are decreasing.
Yet policy uncertainty keeps most investors on the sidelines. The numbers tell the story: Blackstone sits on over $62 billion in inflows with $177 billion of dry powder. TPG and Brookfield have similar war chests waiting for deployment.
"The institutions with the biggest checkbooks aren't chasing crypto at all-time highs or trying to navigate tariff chaos," observed Clinton. "They're positioning for the CRE recovery that's already underway but hasn't been recognized by the broader market yet."
Fundamental Recovery Gaining Momentum
CRE fundamentals are strengthening across sectors, even as media attention focuses elsewhere:
In Q2 2025, industrial leasing activity improved 4.2% year-over-year despite economic headwinds and muted net absorption
CBRE projects that the absence of meaningful new supply in the retail sector will result in low vacancy levels, opening the door to above-inflation rent growth
The office sector has continued to recover; Cushman & Wakefield notes that the four-quarter rolling absorption total improved for the fifth quarter in a row, up 49% year-over-year
"The recovery isn't coming-it's here," said Sjulsen. "While markets obsess over regulatory clarity for stablecoins, we're seeing occupancy rates climb and rent growth return across our portfolio."
The Strategic Rotation Case
The current environment presents textbook conditions for rotating from overheated growth assets toward undervalued real assets with policy support.
The Trade:
Crypto benefits from regulatory clarity but trades at extreme valuations
Growth sectors face tariff headwinds and margin compression
Commercial real estate combines attractive entry points with enhanced tax benefits
Interest rate increases have already been reflected in current CRE pricing
"This isn't about timing the market-it's about recognizing value," said Clinton. "When you can buy stabilized real estate at 25% discounts with permanent tax advantages while Bitcoin trades at all-time highs, the allocation decision makes itself."
The Bottom Line
Real estate organizations have a generational opportunity to capitalize on legislative support, market-bottom valuations, and institutional capital deployment. The combination of OBBBA's permanent tax advantages, sector fundamentals recovery, and pricing dislocations suggests commercial real estate is positioned for outperformance.
"The next cycle always begins when everyone's looking the other way," concluded Sjulsen. "While the market debates crypto regulation and tariff impacts, we're building positions in cash-flowing assets with permanent tax advantages. That's how generational wealth gets built."
As the investment landscape adapts to new legislative realities, the winners will be those who can navigate beyond headline volatility to identify fundamental value in real assets. Commercial real estate-with enhanced tax treatment, attractive valuations, and recovering fundamentals-presents a compelling case for strategic portfolio allocation in today's environment.
About EquityMultiple EquityMultiple's mission is to guide investors toward a stronger, more diversified portfolio. EquityMultiple brings accredited investors curated real estate private equity and private credit offerings, broadening and streamlining access to CRE. Founded in 2015, EquityMultiple has distributed over $478 million to investors with assets across 148 distinct markets in the U.S.. For more information, visit equitymultiple.com.
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