March quarter rent collection plunges by 29%

Rent collection for the March quarter dropped by 28.7% across commercial properties in the UK, according to the latest research. Only 49.7% of rent due had been received 10 days after the March deadline, according to findings from property management platform Re-Leased, which collated live rental collection data from 10,000 properties and 35,000 leases. This compared with a collection average of 69.7% from the past two years, on a like-for-like basis. Offices proved to be the most resilient sector. Landlords in this cohort posted a decline of 8.2%, after receiving just over 60% of rent due 10 days after the March quarter date. This compared with an average of 65.6% over the last two years. Among industrial properties, rent collection fell by 23.5%, after landlords took 49.6% of rent due 10 days after the deadline. The sector recorded an average of 64.8% collection from the last two years. Retail was the worst-affected sector, with a decline of 35.9%. Landlords in the sector received 48% of rent due 10 days after the March quarter date, contrasting with an average of 74.9% collection from the last two years. Tom Wallace, chief executive of Re-Leased, said: “Office properties have emerged as the best-performing sector, with rent collection 20.5% stronger than the national average decrease this quarter. This is not surprising as the sector has been heavily supported by remote working. “However, industrial assets have only fared 5.2% stronger than the national average decrease, despite being touted as one of the strongest asset types. Unsurprisingly, retail has been the worst affected, and landlords with high exposure to this asset class will experience the largest decline in cash receipts.” To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette