Federal spending cuts seem inevitable. While no one knows the exact figure, the House of Representatives did vote to cut $6.2 trillion from the federal budget over the next 10 years. Though it was defeated, it provides the high end for how much the federal Budget could be reduced. More recent discussions seem to peg the low end at $2 trillion. So what would be the impact of these proposed federal budget cuts on employment and thus demand for commercial real estate (“CRE”)? Likely very different from what you think it would be.

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