Landlords collected just 18.2% of June quarter rents

Commercial landlords secured just 18.2% of rents owed on June quarter day (24 June). This compares with 25.3% collected on March rent day, according to figures from property management platform Re-Leased, which collated data from 10,000 properties and 35,000 leases. This resulted in a 28% decline over the three-month period. Industrial assets received 16.2% of rent owed, despite being touted as one of the strongest property types during the crisis. This was down from 23% in March. Offices proved most resilient after collecting 22.8% rent. However, compared to the January-March quarter when 31.2% was collected, the sector posted the greatest decline, with rent collection falling by 8.4%. Retail properties were the worst-performing group, collecting just 13.8% of rent owed, compared with 19.8% on the previous quarter day. During the March quarter, 67% of commercial rent had been paid 60 days after the deadline. This compared with a figure of 84% for the December 2019 quarter. Tom Wallace, chief executive of Re-Leased, said: “June quarter gives us the first real indicator of the severity of the crisis and quantifies the pressure both landlords and tenants are under. “Looking at the level of rent that was collected on due date is sobering, but initial signs are not as catastrophic as some were forecasting. “We expect rent collection to steadily increase over the coming weeks, but it is unlikely to reach the level that we saw in March.” He added: “Looking ahead to the end of the year, we expect there will be more pressure to come. Vacancy rates, rental values, lease terms are all going to see noticeable shifts over the next six months. “The temporary ban on evictions for non-payment of rent and the government furlough scheme is providing a lifeline for many tenants at the moment, but those measures will not last forever.” To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette