COVID-19 News Round-up for August 21

Budget, Policy & Stimulus News 
Three Tax Breaks for Liquidity During Crisis 
Wading through the tax legislation implications of the 2017 tax reform and 2020 CARES Act can be overwhelming for many real estate companies. Three tax breaks, however, warrant special attention. These are: The First-year Depreciation Deduction, Faster Write-offs for Interior Building Improvements and Use of Net Operating Losses to Create Liquidity. (Source: National Real Estate Investor) 
Economic News 
Apartment Renters on the Brink 
Millions of apartment residents have fallen behind on their rent payments, according to data from the U.S. Census — and the damage is likely to spread as the economic crisis caused by the novel coronavirus continues. Federal assistance that helped millions of renters stay current on their rents even after they lost their jobs has now expired with little clarity from Washington on whether it will be renewed. (Source: National Real Estate Investor) 
New Accounting Rules Could Hinder CRE Lending 
Banks and other financial institutions have griped about being inundated with new rules and regulations over the past decade. But for the new Current Expected Credit Losses accounting rules, the timing really could not have been worse. Even before the pandemic hit, the expectation was that the new rules would force lenders to increase reserves, which would take a bite into profitability. (Source: National Real Estate Investor) 
Cap Rates Compress for Essential-use Properties 
Pricing has gotten more competitive for essential use retail properties. Properties that are both considered an essential use and are internet resistant have been especially popular among investors looking to place capital. This includes tenants like veterinary hospitals, pharmacies and grocery stores, all of which have performed well during the pandemic. Non-essential use properties have been taken off the market while businesses remain closed, helping to prop up overall pricing and cap rates. (Source: GlobeSt.com) 
Pandemic Fuels Phoenix Medical Office Absorption 
The Phoenix medical office market experienced a surge in absorption during the second quarter as coronavirus cases increased in the region. As a result, the asset class has managed to outperform expectations during the pandemic with 192KSF of net absorption led by Maricopa Integrated Health Systems, according to research from Colliers International. The vacancy rate also fell slightly to 13.8 percent. (Source: GlobeSt.com) 
Resources 
Chandler Has $9.5M in Small Business Assistance 
Small businesses in Chandler can apply for up to $10K in financial assistance from the city to help retain and hire employees. Chandler is using $9.5M of the nearly $30M in federal relief funding it received for the small-business grants that seek to help businesses with fewer than 100 employees keep staff on the payroll as revenues decline because of the novel coronavirus pandemic. (Source: AZCentral)