Trump 2.0: The First 100 Days | United States

DOGE Federal Employment (Millions)

Impact of CRE

• The Department of Government Efficiency has been tasked with removing waste, fraud and abuse, and generally reducing the size of government. • Its initial goal was to reduce spending by $2 trillion (over an unspecified period). But before President Trump was inaugurated, the goal was softened to $1 trillion. • So far, DOGE has laid off 120,000 federal workers and an additional 77,000 have taken buyouts. We assume that federal civilian employment will decline by 400,000, or roughly -13.5%. A reduction of the federal workforce by 10% would result in ~$350 billon in savings over 10 years, so the cost savings from this could be significant. • On Feb. 7, the NIH announced a 15% cap on ”indirect funding,” a move expected to save $4 billion in 2025. Cuts to research grants have also been announced. The uncertainty around these cuts affects investor sentiment and funding. Life sciences companies looking to expand into new space may need to stay put as capital becomes constrained.

3.1

3.0

2.9

2.8

2.7

2.6

2.5

2.4

2024Q4

2025Q1

2025Q2

2025Q3

2025Q4

2026Q1

2026Q2

2026Q3

2026Q4

2027Q1

2027Q2

2027Q3

2027Q4

2028Q1

2028Q2

2028Q3

2028Q4

2029Q1

2029Q2

2029Q3

2029Q4

2030Q1

2030Q2

2030Q3

2030Q4

December 2024 Baseline

March 2025 Baseline

Source: Moody’s Analytics, Cushman & Wakefield Research

CONTENTS

CONTENTS

Cushman & Wakefield