There has been a substantial jump in rent arrears for commercial premises, according to commercial property management company Re-Leased.
The company said that by April 13 its commercial property clients (landlords) had received just 50.0% of the rent that was due to be paid on April 1, whereas the average that would normally have been received by that time over the previous two years was 90.2%.
That means that exactly half the rental payments were in arrears on April 13, compared to the two year average of less than 10%.
The hardest hit sector was retail, with nearly two thirds of the rent due for retail premises being in arrears on April 13.
According to Re-Leased, just 36.9% of the rent for retail premises that was due on April 1 had been received by April 13, compared to the two year average of 88.6%.
The next most affected sector was offices, with 55.5% of the rent due on April 1 for office premises having been paid by April 13 compared to the long term average of 91.9%.
Industrial premises were the least affected, with 70.1% of the rent due by April 1 paid by April 13, compared to the long term average of 88.1%.
Re-Leased said there had also been a substantial jump in the number of credit notes landlords were issuing to tenants.
"Credit note allocations are commonly used to waive either a partial or full amount of a rent invoice, which indicates both parties have come to some form of agreement about a reduction rent," the company said.
So far, credit notes had been issued for 6.3% of the total rent due on April 1, whereas that would normally be around 1.0%.
"As the month continues, this figure is expected to increase as landlords raise new credit notes to reflect agreements on rent relief," the company said.
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