Key Takeaways
Philadelphia and Pennsylvania have officially moved into the yellow phase, which means some businesses are able to open up. However, employees able to work from home are continuing to do so, though there are concerns about the degradation of relationships in remote working environments. Issues are also being raised about creating new safety guidelines.
Many members are seeing upticks in activity in their various industries as things begin to open up again, particularly in multi-family.
There is some optimism regarding increases in the stock market, but some concern about what’s driving the resurgence and whether it’s a true indicator of economic recovery. 
Landlords and lending institutions have been working with tenants and borrowers to create solutions, though some have experienced difficulty in collecting funds owed. Some properties have been protected from a downturn in leasing activity due to proximity to hospitals and educational facilities.
The CARES Act and PPP continue to be top of mind for many small businesses. PPP has experienced a variety of changes. Minimum percentage of PPP funds for payroll has been lowered from 75% to 60%, employees who choose not to come back will still be counted and many businesses are getting full forgiveness. There has also been a correction to depreciation that has enabled returns to be updated from the past years. 
CMBS delinquency rate has been rising, though there are various indicators of more distress than reflected in the numbers. Most won’t appear as delinquent until they’re into or beyond the grace period.
Changes in interest rates have created opportunities for proactive borrowers. There are options to adjust loans from floating to fixed, to buy down cap rates or to free up release funds from interest reserves. Learn more about interest rates at chathamrates.com. 
SOFR will be replacing LIBOR in the coming months. Some deadlines have been modified, but LIBOR is expected to be phased out by the end of 2021. Fannie Mae and Freddie Mac will stop accepting LIBOR as soon as the end of 2020.