Retail landlords collect less than 15% of rent owed on quarter day

Data from commercial property management software business Re-Leased found that 14% of rent owed to retail landlords was collected on June 24, down from 20% on the previous rent quarter day in March.

Retail landlords were among the hardest hit property owners, with data showing that rent collection across commercial properties overall stood at 18%, down from 25% in March. 

These numbers are based on live rental collection data from more than 10,000 commercial properties and 35,000 leases on Re-Leased’s UK platform.

JD Sports, Primark and Boots were among the big name retailers that withheld rent to some landlords this week, with many others such as Superdrug understood to have deferred payments or not paid due rent in full.

Re-Leased chief executive Tom Wallace said: “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.”

British Property Federation’s chief executive Melanie Leech said: “Early indications are that our warnings to government about the impact of their moratorium on evictions leading to businesses refusing to pay their rent have proved justified. 

“There is no excuse for office occupiers not to meet their legal obligations, and even in the retail and hospitality sectors at the sharp end of this pandemic we know that there are well-financed tenants who can pay their rent but are choosing not to do so.

“This undermines efforts to help those businesses in genuine need of help – and puts at risk critical future investment in our high streets and town centres, as well as our savings and pensions invested in commercial property.”