The latest rent collection figures from commercial property management software company Re-Leased reveal a strong recovery for Australia’s commercial property market.
The report, which analyses rent collection levels in Australia up to 30 April 2022 for each asset class, provides a snapshot of the 2022 recovery following the 2020-21 lockdowns.
Across all commercial property sectors nationally, rent collected by day 30 of the month has jumped from 83.0 per cent in January to 87.1 per cent in April. This was also up from February and March’s figures of 85.4 and 85.5 per cent respectively – a strong sign the market has bounced back from the 60 per cent lows observed during the 2020 lockdowns.
NSW has recorded similar growth across all commercial property, with 87.7 per cent recorded after 30 days in April, up from 83.6 per cent in January, 86.8 per cent in February and 86.6 per cent in March.
It’s a similar story in Victoria, where overall commercial rent collection sat at 88.5 per cent after 30 days in April compared to 81.3 per cent in January.
Queensland has also seen a jump in overall commercial rent collection from 84.1 per cent in January after 30 days to 86.9 per cent in April.
Rent collection for the retail sector has seen a strong recovery in NSW this year with 78.4 per cent recorded after 30 days in April. This is a significant increase from 71.8 per cent in January, and also a 2021 second-half low of 63.6 per cent in September 2021.
Victoria’s retail rent collection has also seen recovery with 86.4 per cent collected after 30 days in April, up from 84.7 per cent in January, but still stronger than the depths of lockdown in October 2021 when it sat at just 71.9 per cent.
Rent collection in the NSW industrial sector has also jumped this year to 90.6 per cent after 30 days in April, up from 88.9 per cent in January.
Victorian industrial rent collection has increased in April to 84.3 per cent, and is also well up from 81.6 per cent in February.
Queensland industrial rent collection is 0.9 per cent higher in April to 90.5 per cent compared to January, but recorded a slight dip from last month’s yearly high of 92.9 per cent.
Office rent collection figures in 2022 remain relatively stable across NSW, Victoria and Queensland after 30 days. NSW had 91.3 per cent in April, up from 87.6 per cent in January, Victoria jumped to 93.2 per cent in April, up from 84.6 per cent in January, and Queensland recorded 88.5 per cent in April, up from 85.6 per cent in January.
Tom Wallace, CEO and Founder of Re-Leased said “As Australians have returned to a COVID-normal way of life out of lockdowns, it’s encouraging to see recovery in commercial property rent collection.
“Businesses have fought their way out of lockdowns, and these largely positive rent collection figures show their ability to operate is the biggest indicator of whether they’re able to pay their rent.
“It’s pleasing to see retail has shown strong recovery in NSW, as people returned to the shops after a long lockdown late last year. Victoria’s retail sector is also showing better rent collection figures, while still suffering from the lag effects of longer lockdowns.
“The relative stability in office rent collections show office-based businesses and their employees have adjusted to flexible working since the initial lockdowns and are now better prepared to continue operating,” said Wallace.
“The increased demand for warehousing and logistics facilities during the pandemic has meant industrial rent collection remains strong, keeping a smile on the faces of landlords and investors.”