Regional office investor Circle Property has received 84% of rent owed for the current quarter, with collection standing at 92% for the period ending December.
Circle said its average rent collection rate had been 90.5% since the pandemic outbreak last year, attributing the majority of arrears to three of its food and beverage properties.
The landlord said its rental income had been increasing throughout the year as rent-free periods on recently granted leases come to an end, with net income growing by £1m to £7.9m per annum.
Circle observed that demand from tenants for fully fitted spaces in the regions had increased amid growing reluctance to fund expensive fit-outs.
As such it has begun to fit out empty sites in its portfolio in Birmingham and Maidenhead, funded from working capital. The investor said there had been a “notable increase” in viewings on these as a direct outcome.
John Arnold, chief executive of Circle Property, said: “We believe that as the UK progresses out of the pandemic, office workers will be keen to return to the workplace and we aim to ensure that our offices provide attractive working conditions fit for the future.”
To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette
