**Proposed NOAA Budget Cuts Could Impact Commercial Real Estate Sector**
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 — a 14% decrease from the agency’s 2025 budget.
Experts warn that this potential reduction in funding could significantly affect the commercial real estate industry. Real estate professionals often depend on NOAA’s data to make informed investment and development decisions. According to a recent article in Urban Land Magazine, the loss of NOAA data and insights could disrupt the industry’s ability to assess climate-related risks.
Investment management firms, for example, use third-party climate risk analytic software built on NOAA data to evaluate properties. Elena Alschuler of LaSalle Investment Management explained that private analysts use NOAA’s information to identify long-term climate hazards at project sites.
“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 noted.
The National Centers for Environmental Information (NCEI), a critical branch of NOAA, also utilizes this data to help ensure that buildings, bridges, and other infrastructure are resilient against changing environmental conditions. The NCEI’s work influences key decisions pertaining to initial siting, engineering, construction, insurance rates, building material costs, and even property taxes. In a public statement, the agency emphasized the essential role of its data in national infrastructure planning and risk management.
Insurance companies heavily rely on NOAA’s historical data on natural disasters to guide underwriting, rate setting, and claims forecasting. Reinsurance firms also use the data to evaluate potential impacts from extreme weather events and natural hazards.
“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 concerns rise over the proposed budget cuts, industry leaders and analysts are calling attention to the vital role NOAA plays in the resilience and sustainability of America’s built environment.
