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UK retailers pay just 12.7 percent of rent owed on September quarter day

By Huw Hughes

1 Oct 2020

Retail landlords have collected just 12.7 percent of rent due on 29 September, this quarters’ rent day, new data reveals. That’s a 1 percent decline compared to June quarter day.

Retail was still the hardest hit sector, and the only one to see rent collection decrease compared to the previous quarter, with offices and industrial assets both seeing improvement.

That’s according to the latest data from cloud-based commercial property management platform Re-Leased.

Overall, commercial landlords have collected 22.1 percent of commercial rents due on 29 September, this quarters’ rent day, an improvement on the 25.3 percent and 18.2 percent collected on March and June quarter days, respectively.

Those numbers improved further down the line, however, with around two-thirds of rent collected 60-days after due date, according to cloud-based commercial property management platform Re-Leased.

Tom Wallace, Re-Leased’s CEO, said: “To see overall rent collection improve on the last quarter day is reassuring, especially following the new restrictions for businesses announced by the government last week and the recent extension of the rent moratorium.

“While there remains uncertainty in the market over rising coronavirus cases and the possibility of further restrictions, initial signs suggest the rent collection curve over the next 60 days will be on par with March and June.”

“These figures will however be very concerning for retail landlords with rent receipts continuing to decline. Retailers are trading in the toughest of circumstances but those who are well-capitalised and can pay some or part of their rent should. Landlords now face huge financial pressure on meeting their own debt obligations.”

Photo credit: FashionUnited