Commercial property landlords appear to be suffering slightly lower rent arrears this month than they were last month.
Cloud-based commercial property management company Re-Leased's latest Rent Collection Report shows that on May 13, its landlord clients had received 60.8% of the rent they were due by May 1, up from 50% at the same date in April.
The average over the previous two years was to have received 92.3% by that date.
Not surprisingly, retail premises have been the most adversely affected, with just 41.8% of the rent due by May 1 being received by May 13, compared to the long term average of 88.6%.
That was followed by office rents with 67.2% collected by May 13 compared with the long term average of 91.9%, while rents for industrial properties held up the best with 75.9% collected by May 13 compared to the long term average of 88.1%.
The report also showed that by May 13, landlords had written off 9.8% of the rent that was due by May 1, compared to the long term average of just 1%, and up from 6.3% in April.
Looking at the regional figures, Otago/Southland has fared the worst with with May's rent receipts down 68% from the long term average, most likely reflecting the severe difficulties facing tourism-dependent businesses in the region.
The least affected region was Waikato, where rent receipts were down just 27% compared to the long term average (see table below for the full regional figures).
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Monthly rental payments received by region for April compared to the two year average
|
Otago/Southland |
-68% |
Taranaki / Manawatu / Whanganui |
-56% |
|
Wellington |
-64% |
Auckland |
-52% |
|
Northland |
-62% |
Tasman / Nelson / Marlborough |
-47% |
|
BoP/Hawke's Bay / Gisborne |
- 59% |
Waikato |
-27% |
|
Canterbury |
-58% |
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2 Comments
Not sure, Greg, that the stock photo chosen to illustrate this article, does much to induce office-dwellers to Return, let alone sign up for a new lease. All it needs to make the illusion of a prison visit room more realistic, is a grim-faced personage in blue standing on the RH wall, and a speaking tube in each cubicle........
Any business owner renting office space, and who has been able to see their staff can work remotely, should be asking themselves why they need the office space, or as much of it? Landlords should be worried.
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