Five-star care. Better care. Faithful, loving care. The word “care” has long been a relied-on term for slogans in healthcare, psychiatry and wellness. It’s a word that signifies empathy and that the person using it really does have a desire to provide for you.
The government used this word as an acronym in the Coronavirus Aid, Relief and Economic Security Act it passed in March. Should CRE pros care? Let’s find out by taking a look at the CARES Act and how it pertains to commercial real estate professionals.
What Is the CARES Act?
As the government tries to cushion the fallout from COVID-19, it has provided relief in the form of stimulus packages and legislation. On March 27, 2020, President Trump signed the $2 trillion stimulus package known as the CARES Act. According to the U.S. Department of the Treasury, the CARES Act “provides fast and direct economic assistance for American workers and families, small businesses, and preserves jobs for American industries.” While the CARES Act directly benefited American individuals and business owners with economic assistance, it contained other provisions that impacted the commercial real estate industry.
CRE Ramifications of CARES ACT
There are quite a few provisions in the CARES Act that directly impact CRE pros and we don’t have time or space to get into all of them today, but there are a few that we want to highlight. According to the Quarles & Brady legal team (a firm that specializes in CRE-related insights), here are the most relevant provisions for the CARES Act pertaining to commercial real estate:
- Payments to Individuals/Businesses
- Use of Individual Retirement Funds for Rent/Expenses
- National Moratorium on Residential Evictions
- Forbearances for Properties with Federal Loans
- Expansion of Bankruptcy Reorganization Access
- Leased Facility Provisions
As you can read about in the report from Quarles & Brady above, these provisions have a direct impact on both the big picture and day-to-day operations of the CRE pro.
How Much Should CRE Pros Care?
CRE pros should care about this act. This is especially true for commercial landlords and their tenants. For example, tenants can have access to forgivable loans that they can use for rent. In the multifamily sector, there are protections against evictions. There are also provisions to keep construction and development projects going, as well as forbearances of payments for federally-backed loans. Overall, the provisions ensure the tenant-landlord relationship continues to be amicable and financially feasible. And this is just one sector of commercial real estate. One thing’s for sure, though: you should definitely care.
Commercial real estate software can also help you keep track of market changes and you’ll have access to a team of industry professionals who can provide guidance. Request a demo of Quarem today!