Leisure sector collects just 29% of September rents

Properties in the leisure sector have collected just 29% of September rents owed so far, according to new research from Colliers International. The collection level has risen by 12% from September rent day two weeks ago (29 September), when it stood at 17%. It is a far cry from the same point in March this year, when 53% of leisure tenants met their payments. However, it is a significant improvement on the two-week mark after June rent day, when just 16% of leisure rents were paid. In contrast, rent collection in the retail sector has grown to 61%. On September rent day, retail properties managed by Colliers collected 44% of rents owed. This represents a steady improvement for retail. A fortnight after June rent day, retail took in 35% of rents owed. At the same point in March, it had collected 42%. Two weeks after September rent day, offices have received 76% of rent. This has risen from 66% in June, and 65% in March. The industrial sector has so far received 84% of September rent, up from 78% in June and 79% in March. Mark Jarrett, head of property management at Colliers International, said: “It’s no surprise that industrial has performed very well again with 84% collected across the sector, a strong indication of the financial strength of all those serving the online retail consumer. “However, the leisure sector is continuing to struggle and whilst the Eat Out to Help Out scheme undoubtedly boosted trade for food and beverage establishments it was only a short-term measure, and trade has fallen away following the increasing restrictions imposed by the government in recent weeks. “Whilst in general terms this quarter’s rent collection performance has been much better than most landlords predicted, it is clear the second wave of the virus is taking hold and there is a genuine fear by many that the resulting restrictions imposed by the government will stifle the economy and reverse gains made since the lockdown ended.” Colliers’ research covers 6,000 properties under its management. To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette Photo © Guy Bell/Shutterstock