Rent collection still lags behind 2019

Rent collection is still 8% below pre-pandemic levels, according to the latest figures from Remit Consulting. The firm said there was “a continuing shortfall” in the collection of commercial property rents, with 91.7% of rents collected 35 days after the June quarter due date That is around 8% below the figures recorded at the same stage of each quarter in 2019. Remit consultant Laura Andrews said: “While our research shows that collection rates for rent on commercial properties are improving each quarter, it is still far from ‘business as normal’. “The market is experiencing a trajectory for rent collection similar to previous quarters during the pandemic, suggesting a further shortfall in overall income at the end of the current quarter. This can only compound the financial challenges for investors caused by the pandemic.” Rent collection for leisure properties, such as pubs, restaurants and hotels, recorded their highest 35-day figure for in the past two and a half years, increasing from 84.3% at 21 days to 91% at 35 days. In addition, collection of service charges from tenants of commercial property remains below pre-pandemic levels. Some 80.5% of payments due at 35 days having been collected in the current quarter, falling to 73.8% for retail. Industrial fared best, with 83.8% collected. Even so, this is an improvement on the previous quarter’s average of 78%. The figures come from Remit’s latest REMark Report, which it has been compiling since 2010. The research covers around 125,000 leases on 31,500 prime commercial investment properties across the country. To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews