Retailers Struggle to Pay as Crisis Deepens

  • Only 13.8% of retail rent collected on June quarter day
  • Retail properties worst performing compared to offices and industrial sector
  • Overall commercial rent collection down by 28% from March
  • Credit notes for rent-free periods trending higher

In the UK, landlords received only 13.8% of rent owed from retailers on the June quarter day, according to Re-Leased’s data. This is a significant drop compared to the 19.8% collected in March. Retail properties fared worse than offices and industrial sectors, which saw 22.8% and 16.2% rent collection rates respectively. Overall commercial rent collection dropped by 28% from March’s 25.3%. Re-Leased analyzed data from over 10,000 properties and 35,000 leases on its UK platform.

Factuality Level: 8
Factuality Justification: The article provides accurate information about the percentage of rent collected by landlords in different sectors during June quarter compared to March. It also includes a quote from the CEO of Re-Leased that gives insight into the situation and expectations for future rent collection. The data is based on a large sample size, making it reliable.
Noise Level: 4
Noise Justification: The article provides relevant information about the impact of COVID-19 on rent collection in the UK property market, but it lacks a detailed analysis or exploration of long-term trends and solutions. It also does not delve into the consequences for different stakeholders or offer actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: UK retail, office, and industrial property sectors
Financial Rating Justification: The article discusses the impact of COVID-19 on commercial rent collection in the UK, specifically focusing on the decline in rent payments for landlords across various sectors. This has implications for the financial performance of these industries and could potentially affect the value of related stocks and investments.
Presence Of Extreme Event: b
Nature Of Extreme Event: Financial Crisis
Impact Rating Of The Extreme Event: Severe
Extreme Rating Justification: The article discusses the significant decline in rent collection due to the COVID-19 pandemic’s impact on the UK retail sector, with only 13.8% of rent owed being received by landlords compared to 19.8% in March and a 28% decrease over three months.

Reported publicly: www.retailsector.co.uk