Group RMC, a national real estate firm with holdings across 14 states, announced an initiative to promote a discussion on the adoption of a reciprocal trade policy to help stabilize the U.S. commercial real estate market. The firm argues that requiring foreign companies to maintain a physical U.S. presence could channel investment into vacant properties and support local economies.
The initiative comes as the sector navigates a significant market correction. Data from firms like CBRE and JLL show vacancy rates at historic highs, placing pressure on property values, municipal tax revenues, and financial stability.
“From downtown San Francisco to the suburbs of Jacksonville, we are observing a fundamental shift in office demand,” said Alex Massa, President at Group RMC. “The solution may lie in aligning our policies with long-standing international practices. In many key economies, a local physical presence is a standard requirement for market access. We believe a similar, reciprocal approach here could have a transformative effect.”
The initiative highlights policies in countries such as China, India, Brazil, and the UAE, where foreign businesses are often required to establish a local office. Group RMC suggests that applying a reciprocal standard in the U.S. would create a direct source of demand for vacant commercial space, particularly in cost-effective secondary markets.
The firm’s analysis indicates that such a policy could yield several potential benefits:
- Stabilized Property Values: Injecting new tenancy demand could help offset the post-pandemic vacancy surge.
- Strengthened Municipal Finances: Refilled office buildings would restore eroding property tax bases, which fund essential services like schools, public safety, and infrastructure.
- Leveled Playing Field: American companies already comply with similar physical presence mandates when expanding overseas. Reciprocity would ensure foreign firms enjoying access to the U.S. consumer market contribute directly to the local economies they serve.
“This isn’t about protectionism; it’s about pragmatism and fairness,” Massa added. “Embedding long-term, physical operations from international businesses creates durable capital investment and jobs. It’s a strategy to build resilience for the next economic cycle.”
Group RMC’s initiative will include outreach to industry associations and economic policy groups to further examine the feasibility and potential impact of reciprocal trade requirements.