Quarterly rents: retailers pay less than in March
Retailers paid their landlords less than 15% of the rent due on quarter day earlier this week.
This was a drop of more than a quarter.
According to online commercial property management company Re-Leased, landlords received 13.8% of what they should have received, down from 19.8% the previous quarter.
Re-Leased calculated the figures based on more than 10,000 commercial properties and 35,000 leases on its UK platform.
‘June quarter gives us the first real indicator of the severity of the crisis and quantifies the pressure both landlords and tenants are under,’ says Tom Wallace, Re-Leased chief executive.
‘It’s crucial to remember that like tenants, landlords will be experiencing significant cash flow problems and have their own financial obligations to meet. 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 to many tenants at the moment, but those measures will not last forever.’