Key-Take Aways
• The office market has stalled, vacancy rates are in the mid-teens.
• Interest rates are very favorable, however loan to value is a very ‘heady’ question.
• Community and regional banks are relatively active, money centers are “stuck” and setting aside a great deal of reserve.
• SBA is finally ready to accept forgiveness packages although they continue to put out guidance on PPP.
• GSA has been active on the federal level, but, not much activity on the state level. GSA will be teleworking for the remainder of 2020.
• Whiting-Turner Contracting Company has implemented about 150 COVID procedures including daily check-in calls for all employees. This new process has brought internal communication to a new level.
• Construction completion is taking longer and is more costly than pre-COVID. Delivery and material delays are challenging and causing ‘re-sequence’ of work.
• Generators, gears, structural steel, aluminum (depending on size and shape), copper wire, stone, granite and specialty items are taking much longer to obtain.
• Workforce deficit continues to be an issue, especially in the mechanical, electrical and plumbing trades. Some are working longer shifts, 7 days a week and split shifts.
• The labor deficit is increasing the need to bring sub-contractors from other areas to meet demand, therefore, driving up costs.