New figures from Colliers show across all sectors the ability to pay rent has improved, jumping from 68 per cent collected on June quarter day to 87 per cent in the 21 days (June +21) following. This compares to 63 per cent of rent collected across the board in the same period last year (June +21 2020). The figures are taken from the portfolio of 1023 properties that are under Colliers’ management.
Mark Jarrett, Head of Property Management at Colliers, commented: “It seems like the upward trajectory in rent collection we have seen since the beginning of the year is here to stay. Throughout the year we have seen office and industrial sectors remain robust, and it certainly feels like levels for these sectors are now firmly back in line with pre-pandemic collections. Although leisure has had a bumpier ride, these figures really feel like the start of recovery in earnest.”
The firm highlights that leisure operators have significantly improved in their ability to pay rent with collection levels rising from 20 per cent on the June quarter day to 41 per cent in the 21 days following. The café sector performed particularly well with rent collections rising from 15 per cent to 53 per cent in June +21. Health & fitness and restaurants both also saw a strong performance in June +21 to reach 34 per cent and 35 per cent of rent collected up from 9 per cent and 25 per cent respectively.
Comparing the June +21 to previous quarters, there has been marked improvement in the leisure sector’s payment ability, which registered just 17 per cent of rents collected at the same period last year ( June +21 2020), and is up from three months ago, where just 25 per cent was collected at the March +21 2021 date.
Ross Kirton, Head of UK Leisure Agency at Colliers, added: “With the continued easing of restrictions we have seen the public return to their local pubs, restaurants and gyms across the first half of this year. While many are still uncertain about how to tackle rental debt accumulated over the last year, the willingness to pay while still operating at a reduced capacity provides proof that the leisure sector as a whole is more resilient than many give it credit for.
“As long as there are no additional restrictions imposed, levels of collection should continue to rise as we go through the next quarter, boosted by the summer trading period and a return to the office (and thus city centres) for many.”
Retail continued its trajectory of recovery with a move from 67 per cent to 80 per cent between June quarter day and the following 21 days. The sector has seen a significant jump since June +21 2020 in which it saw the lowest levels of rent collection at 36 per cent, rising to 66 per cent in the 21 days following last September’s quarter day and staying in the low 70s until now.
The industrial sector continued its strong performance, with 94 per cent of rent collected in the June +21 figures, up from 75 per cent on the quarter day itself adds Colliers. Also proving resilient was the office sector which saw June + 21 rent collection reach 87 per cent, up from 67 per cent on June quarter day.