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Rental commitments being met despite new lockdown measures

06 05 20 business rates

Two weeks since the September quarter day and almost three quarters of rents have been paid for the final quarter of the year. 


Data from the 6,000 strong portfolio managed by Colliers International’s property management team has shown that across three of the four commercial real estate sectors there is more confidence amongst tenants who are paying their rents despite increasing COVID-19 lockdown measures introduced by the Government. 

Following the initial quarter day reporting two weeks ago, a further 31 per cent of rents have been paid by office tenants, 27 per cent paid on industrial units, 17 per cent paid by retailers, and 12 per cent paid by leisure operators. On average across all sectors 74 per cent of rents have now been paid, a rise from 48 per cent on September 29.

Mark Jarrett, head of Property Management at Colliers International, said: “This quarter the most improved sector goes to retail where we have collected 61 per cent of rents already, a significant jump from the 35 per cent which was paid at this stage three months ago. It indicates a much stronger performance in the high streets and out of town schemes which are seeing significantly increased footfall as consumer confidence bounces back.

“It’s no surprise that the industrial sector has performed very well again with 84 per cent collected across the sector, a strong indication of the financial strength of all those serving the online retail consumer.”

With leisure tenants being the most impacted by the Government’s new three tier COVID-19 alert levels it is not surprising that the sector’s payments are significantly lower. 

“The leisure sector is continuing to struggle,” Mark added. “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 that the resulting restrictions imposed by the Government will stifle the economy and reverse gains made since the lockdown ended.” 

See our latest update on Q4 rental payments


Related Experts

Mark Jarrett

Head of Professional Services

Investment Property Management

London - West End

Mark joined Colliers International in 2001

Mark is Head of the Investment Property Management Department

Mark is Head of the Professional Services Division

Others:

Charles Church (residential developers) 1988-1990

Barnett Baker & Co 1990 - 1995

CBRE (formally St Quintin) 1996 - 2001

 

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Kim Inam

PR Manager

Marketing & Communications

London - West End

I'm a communications professional who has previously worked as a journalist for eight years covering a broad range of topics including politics, crime, health and housing in north London. In recent years I have worked in corporate communications for local authorities across London  and joined Colliers in October 2019, initially providing maternity leave cover.

I provide strategic public relations advice to various business lines within the UK organisation to secure recognition for their work in the property press as well as key target media, and work with our experts to produce thought leadership pieces which are of interest to our clients and colleagues within the commercial real estate sector. In addition, alongside colleagues in the PR and wider communications team, I provide media and social media training for our in-house experts to prepare them for media opportunities and raise their personal brand within the sector.

As well as supporting various teams within the UK business, I also I curate and edit regular content for the Colliers.com blog, which drives credible business leads to our experts.

 

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