The Trump administration plans to spend nearly $100 million on the National Oceanic and Atmospheric Administration’s (NOAA) research arm during the 2026 fiscal year. This amount is 14% less than what the agency received in 2025.
How might such proposed cuts impact commercial real estate? A recent article in Urban Land Magazine also explained that “real estate professionals often rely on NOAA data to make informed investment decisions, and the possible impact of the budget cuts could be significant for the industry.”
For instance, investment management firms rely on third-party climate risk analytic software built on NOAA data. Elena Alschuler from LaSalle Investment Management noted that private analysts also rely on NOAA’s data 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,” she said in the article.
Additionally, the National Centers for Environmental Information (NCEI) relies on NOAA data to ensure that buildings, bridges, and other structures can withstand current and future environmental conditions. With the NCEI’s information involving initial siting, engineering, construction, insurance rates, building materials costs and property taxes, “NOAA data and other products are critical to making key decisions about our country’s infrastructure,” the agency said in a statement.
Insurance companies also depend on historical data compiled by NOAA on natural disasters. Altschuler pointed out that insurance providers examine the history and cost of such events, using the data “for underwriting and rate setting, establishing guidelines for their claim aggregations.” She added that reinsurance buyers also rely on NOAA historical data to understand and plan for potential disaster impact.
“NOAA is deeply embedded in the economy and development sector in ways that are not always visible to the public,” Brizaga’s Alex Bogdanoff said in the article. “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.”
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