Landlords have received 65% commercial rent due for the December quarter, according to data from property management platform Re-Leased.
The figures show that landlords received the highest rate of rent for a quarter since the pandemic began. However, the level of rent collected between 25 December and 31 January represents an overall year-on-year decline of 16%.
The retail sector remains the worst affected by the pandemic, collecting 61% of rent due, down from 65% collected for the September quarter and more than 20% down on collection rates a year ago.
Office assets saw a small fall in rent collection, dropping from 75% to 72% for the December quarter. Industrial assets saw a rise in rent collection, with 64% of rent collected for the September quarter and 71% collected for the December quarter.
Tom Wallace, chief executive, Re-Leased, said “Over the past year, rent collection data has provided a live lens into occupier performance and the general health of the real estate economy as it has navigated volatility driven by varying lockdown restrictions. While the statistics have fluctuated since the pandemic started, the overall picture continues to be sobering.
“Our latest figures highlight the rate of rent collection is still some way off the levels we saw prior to the pandemic. The recovery seen in the office and industrial sectors offers some optimism, but it is crucial to remember that with each quarter of sub-par rent collection performance there is a compounding effect for landlords. The true impact of this has not been fully appreciated by the government and it will only deepen as rent collection figures continue to plateau.”