04/13/2026
The Supreme Court just rewrote the rules on tariffs. And SoCal industrial is about to benefit in a major way.
On February 20, the Court ruled 6-3 that IEEPA does not authorize presidential tariffs. The power to tax lies with Congress alone.
Trump pivoted to Section 122 -- a 15% tariff capped at 150 days, expiring July 24, 2026. No extensions without Congress.
Here is what this means for SoCal industrial:
--> CBRE projects 5%+ industrial leasing growth in 2026 -- on top of 12% growth in 2025
--> USMCA trade with Mexico reinforced -- cross-border flows protected
--> De minimis loophole stays closed -- shielding IE 3PL demand from Asia-based competitors
--> Ports of LA + Long Beach: 19.3M TEUs in 2025 -- volumes stabilizing with clearer trade policy
--> New construction at a 10-year low -- supply is not catching up
--> SoCal is the 4th largest industrial market globally
The investor takeaway:
Trade certainty drives industrial demand. The tariff ceiling is set. The timeline is defined. And with construction at historic lows and leasing accelerating, SoCal industrial has the strongest setup in a decade.
DM me or visit firstcapinvestment.com to explore opportunities.
Sources: CBRE, Cushman & Wakefield, SCOTUSblog, Morgan Lewis