Recent results have revealed rent collection in the commercial property sector has been strong recently.
According to the latest findings from British Land, the lifting of Covid-19 restrictions over the summer has helped rescue the industry.
As a result, it collected 96 per cent of its rents over the last six months, noting that it is “close to pre-pandemic levels in retail”, while it managed to collect all its office lets.
Simon Carter, chief executive officer of British Land, said: “We have delivered good financial and operational performance. Strong leasing activity, significantly improved rent collection and increasing values across our campuses and retail parks have driven 6.1 per cent total returns in the half.”
Consequently, its portfolio value rose by 2.9 per cent across its 1.8 million square feet of leased space.
It generates £91 million of rent when its buildings are fully let, which goes towards further investment in commercial property. Indeed, it has ploughed £814 million into more assets since April 1st 2021.
These statistics are similar to those revealed by Remit Consulting recently, which showed collection of commercial rents has reached the highest level since the pandemic began.
An average of 81.9 per cent of commercial rents was paid within a week of their due date, while this figure was typically around 80 per cent before the pandemic, Property Funds World reported.
The findings showed 90.4 per cent of office rents, 83.7 per cent of industrial rents, and 75.4 per cent of retail rents were paid.
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