With the federal shutdown into its second week, specific real estate sectors will feel a far-reaching impact, CNBC reported.

When the government shuts down, home sales and apartment rentals are delayed due to the federal flood insurance program no longer being able to issue new policies; IRS might not process tax transcripts or income verification documents as quickly; and the Federal Housing Administration, Department of Veteran Affairs, and Department of Agriculture might slow or suspend their mortgage processing.

However, the impact to commercial real estate (CRE) is widespread, although, not quite as immediate. A government shutdown delays government data on the economy, which, in turn, causes financial uncertainty and impacts investor confidence, particularly in small businesses.

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.
• Reduced consumer spending, which can hurt retail and other CRE sectors.

Additionally, CREA said a shutdown of the General Services Administration could delay or cancel government leases, negatively impacting the office and retail real estate sectors. A shutdown of the Small Business Administration could make it more difficult for small businesses to obtain loans, dampening demand for CRE. 

Still, the impact of this year’s shutdown on real estate depends on its length. A more prolonged shutdown could see the economy shrink in the fourth quarter.

In the wake of the COVID-19 pandemic, a study of Oregon’s largest school district to evaluate its efforts in improving indoor air quality (IAQ) and mitigating airborne disease transmission found that most classrooms did not comply with IAQ standards.

Children, who often spend more than six hours daily in schools, have high respiratory rates relative to their body weight and reduced ability to filter airborne particles, making them particularly vulnerable to degraded IAQ. While children typically exhibit less acute and severe COVID-19 symptoms than adults, degraded air quality in classrooms leads to an increase in absenteeism and decreased academic performance. Furthermore, because children contribute to community transmission, especially when school is in session, enhanced IAQ measures are critical during periods of heightened airborne illness exposure risk. These efforts also protect educators and school staff, who may face a higher likelihood of severe COVID-19 outcomes.

This study evaluated room- and building-level airflow during the 2022–23 school year, one year after the return to in-person learning in the fall of 2021. According to the report, 27% of classrooms met the 62.1 standards set by the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE)—while only 11% complied with the more stringent Standard 241.

Based on the study’s analysis, its authors provide insight into strategies that can guide future district-wide IAQ improvement efforts. Key outcomes highlight the importance of: 

• Setting clean airflow goals at the room level and presenting compliance metrics clearly, without obscuring areas of need.
• Establishing an IAQ action plan to adjust room-level goals and implementation strategies as guidance for schools continues to evolve.
• Developing a thorough understanding of portable air cleaner (PAC) technologies, capabilities, and limitations.
• Maintaining an up-to-date inventory of district building infrastructure, including space usage and occupancy patterns.
• Engaging with organizations (like ASHRAE) to improve the usability and impact of standards by better accounting for the complexity and varied use of school spaces.

Equitably distributed clean air is essential for fostering a healthy and productive learning environment in schools. School districts across the country could also consider adopting a continuous IAQ monitoring program (such as those implemented by Boston Public Schools in Massachusetts and Montgomery County Schools in Maryland) to assess the effectiveness of current IAQ efforts and inform more strategic resource distribution.