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Tenants' confidence returns as they pay half their rent on time - including 44% for retailers

30 04 20 london west end

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.

SECTOR Jun-20 Sept-20
Industrial  45% 57%
 Leisure  12%  17%
Office  39% 45%
Retail 22%  44%
 TOTAL  36%  48%

 

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.

Read our Q4 September Quarter Update


Related Experts

Mark Jarrett

Head of Professional Services

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

London - West End

I have joined Colliers International after working for five years in local authority in-house communications roles, leading media and marketing in the environmental, licensing, regeneration and planning sectors. 

Prior to joining local authorities I worked for eight years' experience in journalism in north London reporting on a wide range of subjects including politics, crime, health and housing. For three and a half years I managed the team of reporters to produce nine weekly newspapers, a  monthly supplement and the newspapers' social media platforms.

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