Business
What the government shutdown means for commercial real estate
The sunset is reflected in the windows of the US Capitol as a man runs on the National Mall in Washington, DC, on October 1, 2025, the first day of the US federal government shutdown.
Andrew Caballero-reynolds | Afp | Getty Images
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When the government shuts down, real estate watchers tend to focus first on the impact to the residential market. Potentially thousands of home sales will be held up because the federal flood insurance program is no longer able to issue new policies; the Federal Housing Administration, Department of Veteran Affairs and Department of Agriculture might slow or suspend their mortgage processing; and the IRS might not process tax transcripts or income verification documents as quickly.
But the impact to commercial real estate, while not quite as immediate, is much more far-reaching. A government shutdown delays government data on the economy. It causes uncertainty in the financial markets and, consequently, commercial real estate dealmaking, especially for small businesses. It also hits investor confidence. Finally, but most immediately, it causes a pullback in consumer demand for certain sectors.
According to a post from the Commercial Real Estate Alliance (CREA), potential ramifications include:
- Reduced demand for CRE as businesses and government agencies delay or cancel leasing and development projects.
- Greater difficulty for CRE investors and developers to obtain financing and conduct transactions amid uncertainty and market volatility.
- Delayed approvals of permits or other government sign-offs necessary for CRE development projects.
Economic data
The government shutdown meant there was no release of the September monthly employment report from the Bureau of Labor Statistics. That affects investors who need this kind of data to make decisions about the state of the economy and interest rates.
If the shutdown continues, the Census Bureau will not release economic data on construction spending, housing starts and building permits. Those are all key for multifamily investors.
CRE finance
Market uncertainty leads to tighter credit from lenders and potentially higher risk premiums on deals, especially if they have anything to do with federal programs.
“Investors in general and lenders specifically look for stability, and when there’s political instability, it always creates more caution about making investment decisions and lending,” said Ran Eliasaf, founder and managing partner of Northwind Group, a real estate private equity and debt fund manager. “We think the biggest risk to underwrite is political risk. It’s true for the federal level, like government shutdown, and it’s true for local, like the New York City mayoral election.”
Retail, hospitality, senior housing
Looking at specific sectors, retail and hospitality will see the quickest impact because they are entirely consumer driven. Consumer spending, especially in areas where there is a high concentration of federal workers, could drop as employees are furloughed or even laid off.
“I think that’s a big risk,” said Christine Cooper, chief U.S. economist and managing director at CoStar, a commercial real estate information and analytics firm. “Think about all the small retailers and coffee shops. They have very slim margins, so they’re more likely to be disrupted if they lose their customers. They won’t be able to afford it, and you’ll see some closures in pretty short order.”
It’s a similar situation in hospitality, where closures in government services and at national parks will impact tourism. Washington, D.C.’s tourism has already been hit by the administration’s activation of the national guard and other federal troops. This is just one more strike against the city.
Skilled nursing facilities and senior care properties could also see deal delays. Those, along with affordable housing projects, use financing from the U.S. Department of Housing and Urban Development (HUD).
“I think [for] HUD financing, the queue will get longer. Applications will not be processed,” said Eliasaf.
Federal CRE
The federal commercial real estate market will take the hardest hit, as sales of those properties, which are managed by the General Services Administration (GSA), will either be delayed or stopped. Federal contracts, including new leases and property maintenance agreements with tenants, will also have to wait.
“It’s going to impact dealmaking. Definitely anybody that’s negotiating a GSA lease, a government-backed lease, from the VA to even securing HUD financing is going to run into some issues right now,” said Eliasaf.
Depending on how long the shutdown lasts, REITs that cater to federal agencies, like Easterly Government Properties and JBG Smith that depend heavily on government rent payments, could be impacted.
In an SEC filing earlier this year, Easterly said, “substantially all of our revenue is dependent on the receipt of rent payments from the GSA and U.S. Government tenant agencies.”
As for the current shutdown, an Easterly spokesperson said, “In past instances, our tenants continued to operate because their work is considered essential to national security, law enforcement, and public health. Our portfolio is deliberately concentrated in these mission-critical facilities, and our long-term, binding leases ensure that rental obligations remain in place.”
Construction
If past shutdowns are any guide, the construction sector will be hit as well. A report from ConstructConnect, an information and technology company for the construction industry, notes that the government shutdown in 2013 hit federally funded infrastructure projects, because permit reviews by the Environmental Protection Agency stopped. Contractors and trade specialists rely on those permits to mobilize crews.
And, the 2019 shutdown “froze billions of dollars in federal construction spending, stalled approvals for projects tied to the Department of Transportation, and disrupted bidding timelines, which squeezed subcontractors like electricians, plumbers, and concrete specialists, who depend on predictable project starts to manage labor, materials, and cash flow,” according to the report.
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Business
Tech spectrum tussle: US majors push Wi-Fi use for entire 6GHz band as Jio, Vi seek mobile allocation; Airtel, Qualcomm call for deferment – The Times of India
US technology giants Apple, Amazon, Cisco, Meta, HP and Intel have jointly opposed demands from Reliance Jio and Vodafone Idea to allocate spectrum in the 6GHz band for mobile services, instead urging that the entire band be reserved for Wi-Fi use, reported PTI.In a joint response to Trai’s consultation paper for the next round of spectrum auctions, the companies said technical and commercial readiness in the 6GHz band “is not established” for mobile services and asked the government to avoid setting timelines for auction of the 6425-6725 MHz and 7025-7125 MHz ranges.“We do not recommend setting timelines for any future auction of the 6425-6725 MHz and 7025-7125 MHz ranges for IMT… TRAI, together with the Department of Telecommunications, should review the allocation of the upper 6 GHz band following the outcomes of WRC-27,” the joint submission said, adding that any unused upper 6GHz spectrum should be made available for unlicensed use in the interim.The government has said 400 MHz of 6GHz spectrum is immediately available for auction, an additional 300 MHz will be available by 2030, and 500 MHz in the lower band will be delicensed for low-power applications such as Wi-Fi.Jio has demanded inclusion of the entire 1200 MHz available in the 6GHz band in the auction, even though the government has decided to delicense 500 MHz in the lower range. Vodafone Idea has sought the sale of 400 MHz currently available for use. Airtel has asked the government to defer auction of the 6GHz band due to concerns over device availability, equipment readiness and global harmonisation.Qualcomm echoed similar concerns, stating, “The upper 6 GHz band is critical for mobile growth in India… By deferring the auction… until after WRC-27, India safeguards its 6G future, aligns with global standards, and honours its leadership aspirations.”Telecom industry body COAI, whose members include Jio, Airtel and Vodafone Idea, opposed delicensing. “Delicensing is misleading and counterproductive… Licensed IMT spectrum ensures quality-of-service, predictable performance and nationwide scalability,” COAI said, warning that allowing unlicensed Wi-Fi deployments could reduce exchequer revenues and give “disproportionate advantage to foreign OTT players”.The newly identified 6425-6725 MHz and 6725-7125 MHz bands form part of the upper 6GHz range, while the 5925-6425 MHz band has been earmarked for unlicensed low-power applications.
New Delhi: Union Minister for Commerce and Industry Piyush Goyal on Sunday met with Isaac Herzog, President of Israel, to further strengthen the strategic partnership between India and Israel.
During the discussions, Goyal conveyed warm greetings from the people of India and highlighted opportunities for deeper collaboration across trade, investment, innovation, and technology.
During the meeting, Goyal shared the positive outcomes of the recently held Business Forum and CEOs Forum, which brought together business leaders from both countries. He also underscored the first major step towards Free Trade Agreement (FTA) negotiations, highlighting its potential to boost economic engagement and facilitate bilateral trade.
In a post on social media platform X, he wrote, “Honoured to call on H.E. @Isaac_Herzog, President of the State of Israel. Conveyed the warm greetings of the people of India. Our discussions covered the full spectrum of our strategic partnership, including trade and investment, science & technology, innovation, and deeper economic engagement.”
Goyal emphasised India’s robust growth story and the wide-ranging opportunities available for Israeli partners in sectors such as science and technology, innovation, and investment. The discussions reflected a mutual commitment to deepening economic ties and leveraging each country’s strengths for strategic and commercial collaboration, he added.
“Shared the positive outcomes of the Business Forum and the CEOs Forum, and the first big step towards FTA negotiations. Also underlined India’s robust growth story and the wide-ranging business opportunities for Israeli partners,” the post added.
Earlier, during his meeting with Israel’s Prime Minister Benjamin Netanyahu, Goyal highlighted the successful Business Forum and CEOs Forum, which attracted over 60 members of the Indian business delegation.
During his visit to Israel, Goyal held a series of wide-ranging engagements, further strengthening bilateral cooperation across agriculture, technology, innovation and trade. During his meetings on 21 November, Goyal met with Israeli Minister of Agriculture and Food Security Avi Dichter for a detailed discussion on advancing agricultural collaboration.
Minister Dichter briefed Goyal on Israel’s 25-year food security roadmap, its advanced seed-improvement strategies, and the country’s global leadership in water-reuse technologies for agriculture.
Earlier, on 20 November 2025, Goyal commenced his official engagements with a meeting with Israel’s Minister of Economy, Barkat. The two leaders reviewed the current trajectory of bilateral trade and explored new areas of cooperation.
Business
‘Stakes are high.’ With shutdown over, airlines predict record numbers of travelers this Thanksgiving
A travelers check flight information at LAX as the shutdown passes the one-month mark, leaving essential workers unpaid in Los Angeles, California, on November 5, 2025.
Grace Hie Yoon | Anadolu | Getty Images
U.S. airlines are predicting another record Thanksgiving holiday travel period and are upbeat now that the travel-snarling government shutdown has ended.
Airlines will carry more than 31 million people between Friday, Nov. 21, and Monday, Dec. 1, Airlines for America, a lobbying group representing the largest U.S. carriers, predicted Thursday. The busiest days are expected to be the Sunday after Thanksgiving, with about 3.4 million people flying, followed by the Monday after Thanksgiving, with around 3.1 passengers.
Airline executives have expressed relief after the longest-ever government shutdown ended Nov. 12. Shortages of air traffic controllers, who were required to work without their regular pay, delayed and canceled flights, disrupting travel plans for some 6 million people, A4A said.
The industry is now pushing lawmakers to pass legislation to ensure that air traffic controllers are paid in the case of another shutdown, with executives complaining in recent weeks about air travel becoming a political bargaining chip. The latest bill funds the government only through January, so industry members are hoping to avoid a repeat of the closure just before winter break and spring break seasons begin.
Bank of America estimated the big network airlines could see an operating income hit of $150 million to $200 million and smaller carriers would see an impact of $100 million because of the shutdown, but airlines haven’t yet come out with revised estimates.
Some travelers appeared to be waiting until the shutdown ended before booking their travel.
United Airlines said bookings between Nov. 15 and Nov. 16 were up 16% compared with the prior weekend, when air travel disruptions spiked.
The carrier also said bookings for international trips are at a record for the holiday period, up 10% over last year, with Cancun, Mexico, and major European hubs in London and Frankfurt, Germany, as top destinations.
Overall, United forecast it will fly 6.6 million customers between Nov. 20 and Dec. 2., up more than 4% from last year.
The largest U.S. carriers’ international capacity is up about 5% between Nov. 26 and Nov. 30 compared with a similar period last year, according to aviation-data firm Cirium, while domestic capacity is about 2% higher.
American Airlines said it plans to run 80,759 flights from Nov. 20 through Dec. 2., more than any airline.
“The Thanksgiving holiday period is one of the most condensed and most important for our customers — the stakes are high, and the American team is ready to deliver,” American’s Chief Operating Officer David Seymour said in a news release.
Not all airlines have beefed up their schedules, however. Budget carrier Spirit Airlines, in its second bankruptcy in less than a year, has slashed capacity and furloughed hundreds of pilots to cut costs as it seeks to find more solid financial footing.
Spirit’s domestic flying capacity is down close to 40% from a year earlier, Cirium data shows.
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