Properties
in the leisure sector have collected just 29% of September rents owed so far,
according to new research from Colliers International.
The collection level has risen by 12% from September rent day
two weeks ago (29 September), when it stood at 17%.
It is a far cry from
the same point in March this year, when 53% of leisure tenants met their
payments. However, it is a significant improvement on the two-week mark after
June rent day, when just 16% of leisure rents were paid.
In contrast, rent
collection in the retail sector has grown to 61%. On September rent day, retail
properties managed by Colliers collected 44% of rents owed.
This represents a
steady improvement for retail. A fortnight after June rent day, retail took in
35% of rents owed. At the same point in March, it had collected 42%.
Two weeks after
September rent day, offices have received 76% of rent. This has risen from 66%
in June, and 65% in March.
The industrial sector
has so far received 84% of September rent, up from 78% in June and 79% in
March.
Mark Jarrett, head of
property management at Colliers International, said: “It’s no surprise that
industrial has performed very well again with 84% collected across the sector,
a strong indication of the financial strength of all those serving the online
retail consumer.
“However, the leisure
sector is continuing to struggle and whilst the Eat Out to Help Out scheme
undoubtedly boosted trade for food and beverage establishments it was only a
short-term measure, and trade has fallen away following the increasing
restrictions imposed by the government in recent weeks.
“Whilst in general
terms this quarter’s rent collection performance has been much better than most
landlords predicted, it is clear the second wave of the virus is taking hold
and there is a genuine fear by many that the resulting restrictions imposed by
the government will stifle the economy and reverse gains made since the lockdown
ended.”
Colliers’ research
covers 6,000 properties under its management.