Retail and office rent collection have made strong recoveries in New South Wales and Victoria after lockdowns ended and restrictions lifted over the last month, according to the latest rent data from Re-Leased.
The figures from the commercial property management software company analyse rent collection levels in Australia up to 30 November 2021, and provide a snapshot of the impact of the latest lockdowns, explored for each asset class.
With most COVID restrictions lifted during the month, Victorian retail rent collections were the star performer, rebounding from a yearly low of 72 per cent collected by day 30 of October, to reach its highest point in almost two years of 86 per cent collected after 30 days in November.
The retail rent credited figure (which indicates discounts given by landlords to tenants struggling to pay rent) in Victoria also improved dramatically, to sit at just 1.9 per cent after day 30 of November, well down from the previous month at the same time of 4.1 per cent.
It was a similar story in New South Wales where retail rent collection made a strong recovery to hit 75 per cent after day 30 in November, up from its second-lowest point for the year after day 30 in October of 67 per cent.
The retail rent credited figure in NSW also improved after day 30 of November to 4.8 per cent, well down from the previous month at the same time of 6.9 per cent.
Victorian office rent collection has also improved markedly to 87 per cent by day 30 of November, up from 72 per cent at the same time in October, suggesting conditions have improved for some office businesses this month after several lockdowns.
Across all commercial property sectors on a national level, rent collected by day 30 of November also jumped from 80 to 83 per cent as lockdowns ended and most restrictions lifted. Pre-pandemic in January 2020 and December 2019, this figure was at 86 per cent.
Tom Wallace, CEO of Re-Leased, said “With Victoria and New South Wales out of lockdown with most restrictions lifted, it’s pleasing to see rent collection figures improve immediately. Landlords will be hoping the retail sector can continue to recover as their ability to operate is the critical factor in paying the rent.”
“Victorian office rent collection has also improved significantly over the last month, suggesting the easing of restrictions has helped many office-based businesses too.”
“Overall, it’s pleasing to see significant recovery in the retail and office sectors indicating improved business performance for landlords and tenants.”