**The Connection Between CRE and NOAA Budget Cuts**
The Trump administration plans to allocate nearly $100 million to the National Oceanic and Atmospheric Administration’s (NOAA) research arm for the 2026 fiscal year—marking a 14% decrease from the agency’s 2025 budget.
These proposed cuts could have significant consequences for the commercial real estate (CRE) sector. As highlighted in Urban Land Magazine, real estate professionals rely heavily on NOAA data to guide investment decisions. A reduction in funding could hinder the quality and accessibility of critical climate and weather research used throughout the industry.
Investment management firms often utilize third-party climate risk analysis tools that are built on NOAA’s datasets. Elena Alschuler from LaSalle Investment Management noted that private analysts depend on NOAA data to assess long-term climate risks at specific project locations.
“If a location is flagged as having an elevated physical climate risk, then we will dig in and review additional data sources to look at how the property was built, or other resiliency measures at the property or in the local community, to make a final determination as to whether we’re comfortable with that level of risk,” Alschuler explained.
Furthermore, the National Centers for Environmental Information (NCEI), which relies on NOAA data, provides vital resources to ensure infrastructure like buildings and bridges are designed to withstand existing and future climate challenges. Their data impacts decisions related to site selection, construction techniques, insurance rates, and even property taxes.
Insurance companies also depend on NOAA’s historical data to assess the financial impact of past natural disasters. This information is instrumental in underwriting, rate setting, and developing claims aggregation guidelines. Reinsurance buyers, in particular, use NOAA’s historical records to plan for potential catastrophic events.
“NOAA is deeply embedded in the economy and development sector in ways that are not always visible to the public,” said Alex Bogdanoff of Brizaga. “Whether they’re deciding to acquire property or make an investment, reviewing potential hazards, or assessing existing or future mitigation efforts, evidence-based decisions depend on data and research from NOAA.”
As the CRE industry becomes increasingly dependent on climate-related analytics, policymakers and industry leaders alike will be watching closely to see how reductions to NOAA’s budget impact future development and investment strategies.
