Re-Leased, the cloud-based commercial property management platform, has revealed that only 21% of commercial rents due in Q1 in the UK were collected by landlords on 25 March. This marks a decline on the previous two quarters, suggesting the third national lockdown has caused the rate of rent collection to soften after seeing some positive growth at the end of last year when restrictions were lighter.
Re-Leased’s analysis is based on live rental collection data from over 10,000 commercial properties and 35,000 leases on its UK platform.
Tom Wallace, Re-Leased’s CEO, said: “The past year has tested the resilience of the commercial real estate industry like no other. It is clear from our latest figures that one year on, we are far from ‘back to normal’, with rent collection still below pre-pandemic levels.
“The burden of three national lockdowns and other social restrictions has placed substantial pressure on occupiers and landlords, many of who are now navigating dire financial circumstances. The debt pile continues to grow into the billions and the compound effect of five quarters of rent shortfall must not be underestimated.”