Stronger than anticipated rent collection figures have helped buoy landlords of retailers ahead of the crucial Christmas trading season.
Despite Landlords and retailers holding their breath in the run up to the September Quarter day, rent collection figures remained robust with fewer than anticipated tenants defaulting on the payment of their rents.
An upbeat report from Colliers International revealed 94 per cent of retailers paid their rent on time on quarter day (September 29) up from 85 per cent for the same quarter last year.
Mike Bull, head of Investment Property Management at Colliers International Bristol office, said the fact a high proportion of rental payments had been processed on time showed high street retailers and their landlords were communicating better and that recent difficult conditions had led to a better understanding between occupiers and landlords.
He said: “At Colliers we have a strong track record on collection with 99 per cent of collectable rents in within 14 days of the quarter day for the last 14 quarters in a row.
“Having a well-resourced, well trained credit control team is crucial to that, but it also needs Property Managers who are regularly communicating with retail tenants to enable them to best protect their clients’ interests and, if a tenant is struggling, best placed to provide the right advice to the landlord on how to deal with it.”
The December quarter will be the crucial quarter for many retail occupiers as the lead up to Christmas is the time of year when many will be expecting to take the lion’s share of their turnover so, whilst the figures for September are positive, landlords and their agents should remain wary.
The lead-up to the previous quarter day in June saw several big name High Street retailers forced into administration, including Jane Norman, TJ Hughes and Habitat.
Mike Bull added: “Now is the time for landlords of retailers and their agents to be keeping in touch with tenants and keeping their eyes open for the tell-tale signs of a tenant in trouble.
“Being close to a tenant doesn’t just mean you spot the signs of trouble, but also that you are well placed to advise your client on how best to deal with it – a better understanding of a tenant’s business and their requirements can help you give the best advice as to whether to, for example, support the tenant going forward by way of a payment plan or to take further action to protect their position.”
