Real estate rent collection is back at pre-pandemic levels, according to the latest figures from Re-Leased.
The firm’s Tenant Health Index, which covers 90,000 commercial property leases, shows that average rent collection across industrial, hospitality and leisure, office and retail stands at 96% for the 12 months to September. That compares to 50% at its Covid-era low.
Retail saw the strongest recovery with an average rent collection rate of 96%, up from a historic low of 44% in May 2020. Office rent collection stands at 98%, compared to 64% in May 2020. Industrial and hospitality collection stood at 96% for both sectors.
The index’s tenant retention rate, which tracks the percentage of occupiers remaining after 12 months, stood at 80%. The average rent retention rate, which compares rent paid by retained tenants to the previous year, was 86%.
Tom Wallace, chief executive at Re-Leased, said: “With rent collection rates reaching 2019 highs, the data signals recovery for landlords and tenants alike after the turbulence of Covid and the cost-of-living crisis. We see signs of stability in occupancy and rent growth, particularly in high-demand sectors like industrial, with encouraging data emerging from the office and retail sectors as they continue to evolve.”
Photo by Maureen McLean/Shutterstock
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