A standoff between political parties in Congress triggered a government shutdown on Oct. 1, causing disruptions to many government services. The immediate impact on commercial real estate, however, is expected to be limited, according to research by Marcus & Millichap.
According to the firm, government shutdowns have historically had little impact on day-to-day operations of commercial real estate, with property owners and tenants operating as normal without interacting with the federal government. However, if the shutdown lasts for more than 30 days, financial subsidies provided to landlords for low-income renters by the Department of Housing and Urban Development would be affected. Regarding investment sales, financing is still available, and transactions can still close. According to the Marcus & Millichap research, the Federal Reserve is still expected to carry out monetary policy operations, though some data sources may be interrupted. This may open possibilities
