Major cuts to the federal workforce are happening as Elon Musk and President Donald Trump seek to reduce headcount. Approximately 75,000 federal employees accepted a resignation offer, representing about 3.3% of the 2.3 million eligible workers. The real estate market is closely monitoring these cuts, which are part of broader reductions underway in federal real estate. Trump has signed an executive order requiring agencies to work with the Department of Government Efficiency to lower their employee counts, with the goal of achieving budget reductions of 30% to 40% across agencies.
ICE raids at U.S. apartment buildings are increasing, creating legal challenges for property owners and managers. The Center for Migration Studies estimates that up to 5.8 million U.S. households include at least one unauthorized immigrant, leaving landlords uncertain about enforcement, as fair housing laws prevent them from screening tenants based on immigration status.
In economic news, President Trump is imposing a 25% tariff on all steel and aluminum imports, primarily affecting Canada and Mexico, while also targeting industries in Europe and Taiwan. This has led China to retaliate with $14 billion in duties on U.S. goods. The Tax Foundation predicts these tariffs could decrease U.S. GDP by 0.4% and raise household taxes by $800. The construction industry is stockpiling materials to manage costs, increasing demand for industrial storage and warehouses.
Commercial real estate (CRE) lending is strong, according to CBRE’s Lending Momentum Index, which shows a 37% year-over-year increase. Banks are leading the market, while multifamily lending grew significantly, with agency originations rising 87% in Q4 to $53 billion.
Placer.ai’s January Mall Index shows growth across all mall types, with indoor malls increasing visits by 5.5% and strip malls outperforming traditional centers with foot traffic up 18% from pre-pandemic levels. Strip malls also saw nearly 3% rent growth year-over-year in Q3, as vacancies remain low in the retail sector.
Source: Bisnow.com.
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