Stronger-than-expected rent collection figures have helped buoy high street landlords ahead of the crucial Christmas trading season.
Some 94% of retailers paid on time on quarter day – the day every three months when rents are due – up from 85% for the same quarter last year. The figure is a rare piece of good news from the beleaguered retail sector, which has been struggling against the slowdown in consumer spending.
Mike Bull, head of investment property management at Colliers International’s South West office, said the figures showed high street retailers and their landlords are communicating better and that recent difficult conditions had led to a better understanding between occupiers and landlords.
Several big name high street retailers were forced into administration, including Jane Norman, TJ Hughes and Habitat, during the lead-up to the previous quarter day in June.
And December’s quarter day will be crucial for many retailers as it will reflect the lead-up to Christmas – a period when many expect to make in the lion’s share of sales.
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.”
