Commercial rent collection falls by -28.7%
Commercial rent collection fell by 28.7% in March compared to the proceeding two years, Re-Leased has revealed in it COVID-19 Rent Collection Impact Report.
Only 49.7% of rent due in the UK had been collected 10 days after the March quarter date. This contrasts to a collection average of 69.7% from the last two years on a like-for-like basis.
Re-Leased’s analysis is based on live rental collection data from over 10,000 properties and 35,000 leases on its platform.
Tom Wallace, chief executive of Re-Leased, said “Covid-19 has impacted the UK property market quickly and deeply with landlords experiencing a significant curtailment in the collection of rent for the March quarter.
“Our analysis reveals just how considerable the challenges will be for landlords, many of who own or manage small portfolios, family trusts or charities for example, and won’t benefit from the security some of the bigger operators can depend on in the weeks and months ahead.”
Retail rent collection fell by 35.9% 10 days after the March quarter compared to the two-year average.
Office assets have proved most resilient with an overall decline of -8.23%, with industrial assets at -23.5%.