Landlords collect 18% of June quarter rent
Landlords have received just 18% of commercial rents due on the 24 June rent day, marking the lowest level seen since June last year.
The June collection rate compared with an average of 21% on March quarter day, according to new research from Re-Leased, which analysed more than 10,000 commercial properties and 35,000 leases. It is on a par with June 2020 figures, when there was an average of 18%.
Offices remained the strongest performing sector with rent collection at 24%. This was the same level seen before the pandemic, in December 2019.
Landlords have received just 18% of commercial rents due on the 24 June rent day, marking the lowest level seen since June last year.
The June collection rate compared with an average of 21% on March quarter day, according to new research from Re-Leased, which analysed more than 10,000 commercial properties and 35,000 leases. It is on a par with June 2020 figures, when there was an average of 18%.
Offices remained the strongest performing sector with rent collection at 24%. This was the same level seen before the pandemic, in December 2019.
Despite the reopening of retail in Q2, it continued to be the poorest-performing sector, collecting 14% of amounts owed.
While industrial has typically been considered a more resilient sector, it posted the sharpest dip compared with the previous quarter after receiving 19% in June. This was down on 26% in March.
Geographically, London experienced a slow start with just 10% of rent collected, while the North East continued to suffer the lowest performance in rental returns (6%).
Caleb Dunn, analyst at Re-Leased, said that London has had a “very slow start”. However, he said he expects to see collection rates rise in the coming weeks.
Dunn said: “While there isn’t an immediate need to worry that the numbers are a few basis points down to last quarter, it does demonstrate that landlords are struggling with consistent liquidity – we’re still talking about a significant proportion of rent each quarter not being collected.
“With the recent UK government announcement that eviction protection will be extended up to 25 March 2022 for businesses most in need, landlords will be looking for a balanced resolution that protects occupiers at risk, while ensuring those that can pay do fulfil rent obligations.
“Landlords will be keeping a close eye on a rebound in rent collection that will take some time to come through, even after the expected 19 July milestone for further easing of restrictions.”
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