A shift toward neo-mercantilist policies is reshaping commercial real estate, as governments prioritize domestic production, supply-chain security and strategic industries, according to a March 2026 report from New York Life Investments. The report says this shift is being driven by several forces, including China’s rise as a manufacturing and technology power, the Global Financial Crisis, COVID-19 supply-chain disruptions, and renewed U.S. efforts to strengthen domestic production in sectors such as semiconductors, pharmaceuticals, advanced computing, defense and shipbuilding.
The industrial sector is expected to be most directly affected, with manufacturing and logistics assets playing a larger role as companies adjust supply chains and the United States pushes to reshore key industries. The report says port markets, southern industrial markets tied to Mexico trade, and metros benefiting from semiconductor and advanced manufacturing investment could see increased demand.
