Rent levels are still holding up despite the Covid-19 pandemic, Colliers International reported in its latest quarterly round-up.
Two weeks after the typical quarterly deadline, Colliers International’s Property Management team collected 63% of rent and 57% service charge across all property sectors. This compares with a typical quarter at 99.5% and 89% respectively.
Industrial occupiers of units over 100,000 sq ft and between 10,000 and 100,000 sq ft have seen the highest percentage of paid rents, 82% and 70% respectively.
Andrea Ferranti, head of industrial and logistics research, said: “Rents and rent free periods are still holding firm as landlords are waiting to see how the current business environment will pan out. We expect rents to plateau over the medium-term with incentives moving out slightly over the coming months.”
Logistics and industrial real estate investor LondonMetric announced in its latest trading update, that rent collection has remained ‘robust’ across its £2.3 billion portfolio.
It said: “92% of rental payments due by 1 April have been collected or are being collected monthly.
“Short term rental concessions with compensatory asset management initiatives are agreed or being finalised on a further 4%, while short term rental deferrals have been agreed on another 3%
“18% of our rent is now paid monthly compared to 13% previously. In respect of monthly rents due by 25 April, similarly high rent collection levels are being achieved.”