Q1 Rent collection levels holding up better than expected
Updated: May 7, 2020
In spite of the continuing lockdown the Q1 rent collected across our client assets is better than expected with almost 80% rent due paid by quarter end.
The lockdown continues to adversely affect all occupiers of commercial real estate but tenants are being creative about how to survive this crisis. Those with an existing on-line presence have expanded their on-line operations.
As expected, hospitality and leisure tenants are finding the current climate most challenging.
Logistics and warehouse tenants, especially those contributing to 'key services' are working hard to implement social distancing measures in their work place to minimise the impact.
Almost 80% of the rent due was paid on time by quarter end. Where full rent due was not payable agreements are quickly being reached by way of lease extensions or payment across a longer period. Some leases have been amended to monthly payments to allow tenants to better manage their cashlfows.
The impact across the residential private rented sector is limited with government subsidies supporting the rental payments.