Relief as retailers maintain 22% of rent payments

Retailers have paid 22% of rent due to landlords on the first day of the new quarter, according to Colliers International.  This is the same amount that was paid on the first day of the last quarter. Across the commercial property sector overall 36% of rents were paid, Colliers reported. “Normally landlords can expect to receive 95% of their rents and charges on time, and only those businesses which are struggling will default,” Mark Jarrett, head of property management at Colliers, said. “Today’s figures are welcome relief for landlords who had feared that payment rates would be lower as many retailers have been unable to trade at this time.  “Now that non-essential shops have been able to reopen and more businesses will be opening from 4 July, we can expect a more favourable outcome this quarter.”  David Fox, co-head of retail agency at Colliers, added: “Retailers are looking at their stock and making plans for how to best entice consumers over the next six months to try to recoup their losses and pay their debts to landlords and creditors. “The best thing for landlords to do at the moment is to keep talking to their tenants, because if they have an occupied and trading business in their premises now, then they’re in better shape than 25% of landlords with empty properties.” By the end of the last quarter retailers had paid a total of 62% of their rent payments, and with many having now renegotiated their rental agreements and switched to monthly payments Colliers expects that over the next week more rents and service charges are likely to be recouped.  To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette