According to the latest figures, 22.1 per cent of commercial rent due was collected on 29 September, increasing from 18.2 per cent in June, but still lower than March’s 25.3 per cent.
The data showed that the retail sector was the only commercial property sector to experience a reduction, with the office and industrial sectors both seeing a rise in rents collected.
Recent research has revealed that two-thirds of commercial property rent was collected 60 days after the deadline in June, with businesses feeling the impact of the coronavirus pandemic. September’s figures show a one per cent decrease in rent collection in the retail sector in comparison with June’s rental collected figures.
At the beginning of September, experts estimated that less than 50 per cent of rent due would be paid by operators on the third quarter rent day.
Now, the British Property Federation estimates that the total unpaid rent for UK commercial property between late March and the end of December will reach £4.5 billion.
As the retail sector encountered difficulties post-lockdown, the Government extended the moratorium on commercial property tenant evictions for non-payment of rent until the end of 2020.
However, many believed this would add stress on retail property companies, due to not receiving protection during the period after Christmas, which is usually a peak period for retailer insolvencies.
Recent figures suggest that retail footfall on high streets has decreased year-on-year, with the 10 pm curfew for the hospitality sector also seeing footfall decrease by 6.8 per cent.
For help and advice on matters relating to commercial property, contact our expert team today.