COVID-19’s Impact on American Businesses and Major Vaccine Update
We continue to monitor how changes in the laws due to COVID-19 restrictions impact the areas of law we practice in.
Due to the Thanksgiving holiday and upcoming Christmas holiday, experts, including Dr. Fauci of the National Institute of Allergy and Infectious Diseases, are anticipating a “surge on a surge” of new coronavirus cases. Hospitals are considering a number of post-Thanksgiving surge actions, including delaying more elective surgeries and adding yet more beds.
COVID-19 hospitalizations across Illinois have begun to decline after weeks of sharp growth, but public health advocates expressed concern that infections from the Thanksgiving holiday may undo any improvements. Source: Mahr, Joe; Petrella, Dan; Schencker, Lisa. Chicago Tribune. 01 Dec 2020. Governor J.B. Pritzker stated he “hoped to see more progress in lowering hospitalizations by now” and the tighter restrictions that took effect on November 20, 2020 —including business capacity limits— are likely to continue for the next few weeks.
Public health advocates suggest anyone who attended a holiday gathering get tested later this week and quarantine themselves. Dr. Vineet Arora, a University of Chicago professor of medicine, states some people may have put off seeking hospital treatment until the Thanksgiving holiday passed. Dr. Arora, who helps lead the Illinois Medical Professionals Action Collaborative Team, stated his team is “bracing for what this week will show … I think the jury is out. We just don’t know.”
Restaurants and Bars
The situation for Illinois restaurants and bars has been dire.
According to RestaurantData.com, 526 restaurants closed in Illinois between June and September. The combination of some indoor dining, curbside pickup, delivery, and perhaps a stimulus could sustain the industry. According to a recent National Restaurant Association survey, two-thirds of Illinois restaurants stated they will close within six months without some form of federal aid.
The Governor of Illinois and Mayor of Chicago perceive restaurants and bars as risky exposure sites. The Pritzker administration has provided $52.8 million in grants to more than 2,300 restaurants and bars in Illinois since the pandemic’s onset. Mayor Lightfoot recently announced $10,000 grants for restaurants and efforts to cap third-party delivery fees. The City Council passed an ordinance by 49-0 that places a 15% cap on all third-party delivery fees (the ordinance will be repealed once indoor dining is allowed at 40%+ capacity for 60 consecutive days).
It is unclear if the aid and these efforts will be enough to sustain the largest employer in the State of Illinois.
Residential Real Estate: Chicago and Suburbs
The downtown occupancy rate in Chicago is the lowest in 22 years since Integra Realty Resources, a consulting and appraisal, began tracking the downtown market.
Downtown landlords have cut rents and offering unprecedented incentives to new tenants, including three months of rent abatement. “The coronavirus pandemic and civil unrest over the summer have reduced the appeal of high-rise living across the country, and with so many people working from home, fewer are renting apartments to be near a downtown workplace.” Source: Gallun, Alby. Crain’s Chicago Business. Chicago Vol. 43, Iss. 47.
The pandemic and civil unrest are forces depressing demand for apartments in downtown Chicago. In the suburbs, the apartment occupancy rate rose in the third quarter. According to Ron DeVries, Integra senior managing director, the downtown market will not return until at least Spring of 2023.
Vaccine
An old adage is that “this too shall pass.” Still, COVID-19’s impact has been devastating. According the WHO, as of today, December 1, there are about 62.8 million cases and 1.5 million deaths worldwide.
City and State health officials are engaged in vaccine planning. Chicago’s Health Commissioner, Dr. Allison Arwady, expects the federal Food and Drug Administration to approve emergency use authorizations for two vaccines in December. A committee for the Centers for Disease Control will make recommendations on how to distribute the vaccine. It is possible, according to Dr. Arwady, for Chicago to begin vaccinating frontline healthcare workers within weeks.
Chicago’s Vaccine Plan can be accessed here: https://www.chicago.gov/city/en/sites/covid19-vaccine/home/vaccine-planning-in-chicago.html