Two months on from March quarter day, total commercial property rent collection has jumped from 57% to 89% notes Colliers.
Both leisure and retail sectors have seen rent payments increase significantly in the two months since March quarter day. The retail sector saw levels rise from 38 per cent to 85 per cent, while the leisure sector increased from 18 per cent to 37 per cent.
Mark Jarrett, head of Property Management at Colliers, commented: “The increase in rent payments from leisure and retail businesses demonstrates the significant impact that the lifting of restrictions can have on operators. Our rent collection figures have painted a picture of the impact of COVID-19 on commercial property over the last year and I am glad to see that collection levels and sentiment have both started to improve. The coming quarter day on June 24 will complete the picture and hopefully show that the resilience and optimism felt today is reflected in financial performance.”
The firm shows that high street and out of town retail has been particularly boosted in the two months following March 25, rising from 25 per cent to 87 per cent for high street and 44 per cent to 78 per cent for out of town. High street and shopping centres have seen their highest +2 month collections recorded since the beginning of the pandemic.
Considering leisure assets, the hotels sector has significantly improved rental collection levels, rising from 33 per cent to 63 per cent since the beginning of the March quarter and similarly achieving its highest +2 month collection rate since June last year.
The restaurant sector has also seen a record +2 month rent collections since June 2020, exceeding the rent levels collected during last summer’s Eat Out to Help Out scheme, with 30 per cent of rent collected two months on from the March quarter day.
Colliers notes consistently strong performers industrial and offices saw levels rise from 68 per cent to 94 per cent, and 61 per cent to 93 per cent respectively, in the two months following March quarter day.