Despite the increase in local lockdowns and the Government suggestion people should return to working from home, the September Quarter day rental payments have seen a surge in payments from the retail sector, according to Colliers International.
Tenants of retail assets managed by the commercial property advisor’s team paid on average 44% of their rent on 29 September 2020, at the beginning of the final quarter of the year. Colliers has gathered data from the 6,000 tenancies they manage and found that across all commercial property sectors a total of 48 per cent of rents were paid on the quarter day.
The below table provides a sector breakdown of the quarter day payments made during the height of the COVID-19 pandemic in the UK.
Mark Jarrett, head of Property Management at the firm said: “Tenants have indicated their confidence for the future by paying half their rent on time, and sectors such as retail and offices are bouncing back strongly. This is very encouraging for landlords when you consider many are now allowing tenants to pay rent monthly rather than quarterly.
“There is naturally still some uncertainty within the leisure sector in response to the Government’s additional restrictions announced last week, but across the commercial property sector there are definitely reasons to feel positive as we enter the last quarter of 2020.”
By the end of the last quarter, across all commercial property asset classes a total of 83 per cent of rents had been collected.