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Landlords’ relief as 22 per cent of retailers paid rents on time – same as last quarter

26 06 20 Landlords relief as 22 per cent of retailers paid rents on time hero

Retailers have paid 22 per cent of rents to their landlords on the first day of the new quarter, the same as paid on the first day of the last quarter, reports Colliers International.


Wednesday 24 June was the traditional Quarter Day when rents are paid according to lease agreements, Colliers has gathered data from the portfolio they manage and found that as of 24 June 2020, 22 per cent of retailers have met their dues. Across the commercial property sector overall 36 per cent of rents were paid.

Mark Jarrett, head of Property Management at the firm said: “Normally landlords can expect to receive 95 per cent of their rents and charges on time, and only those businesses who are struggling will default. At March’s Quarter Day we saw 22 per cent of retailers paying their rent, and this figure has remained stable three months later, despite most businesses being forced to close due to the COVID-19 lockdown.

“Today’s figures are welcome relief for landlords who had feared that payment rates would be lower as many retailers have been unable to trade at this time. Now that non-essential shops have been able to reopen and more businesses will be opening from the 4th July we can expect a more favourable outcome this quarter.”

By the end of the last quarter retailers had paid a total of 62 per cent of their rents.

Even in advance of the COVID-19 lockdown many businesses had renegotiated their rental agreements with landlords and switched onto monthly payments. Due to the current crisis even more business have made this change, which means that over the next week more rents and service charges are likely to be recouped. Last week the Government announced an extension to measures to protect high street tenants from eviction and taking legal action over non-payment of rents until the end of September.

David Fox, Co-Head of Retail Agency at Colliers added: “While this is welcome news for landlords, the priority for retailers currently is to get their stores open and trading again, as physical shops are still the mainstay for creating revenue. Retailers are looking at their stock and making plans for how to best entice consumers over the next six months to try to recoup their losses and pay their debts to landlords and creditors.

“As Mark says, the best thing for landlords to do at the moment is to keep talking to their tenants, because if they have an occupied and trading business in their premises now, then they’re in better shape than 25 per cent of landlords with empty properties.”

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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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David Fox

Co-Head of Retail Agency

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London - West End

 I am a former partner at BCL and have specialised in retail property in the Midlands ,North ,Scotland and Northern Ireland throughout my career.
Within my role as Co Head of UK Retail Agency  I have responsibility for our retail coverage in Birmingham,Leeds ,Manchester ,Glasgow and Edinburgh , and continue to build relationships with new and existing clients. 

Over my career I have advised a wide number of retail occupiers in their proprty strategies including DixonsCarphone, Boux Avenue , Hotel Chocolat , Costa and  Oliver Bonas.

I have advised a  range of investors , institutions and property companies in respect of their assets across the country , including shopping centres, high streets , transport hubs and retail parks. 

In an ever changing market  my experience has extended into asset management roles in respect of compromised shopping centres on behalf of recovery specialists and  lenders. The repurposing and regeneration of town centres and shopping centres  is an area of particular interest and  the focus of my team and colleagues.  as our industry rises to the challenge     set by change.

 

 

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Kim Inam

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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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