An estimated 80% of retailers are said to be in rent arrears with landlords following economic woes caused by the pandemic.
High streets have seen forced closures of shops for up to 9 months due to the local and national lockdowns implemented in response to the Covid-19 Pandemic. This has left many retail, leisure and hospitality businesses in debt, struggling to pay their rents from month to month.
Many landlords are proposing deals for their retail tenants, including 50% reductions in rent during forced closure periods. Landlords are also accepting deferred payments, and even in some cases, waiving rents altogether for lockdown periods.
Duncan Graham, Managing Director of Retail Experience, has said that “Deals are being done across the board but in general, it seems it is the smaller, local landlords that are being reasonable and willing to compromise”. Surveys show that bigger, multi-asset commercial landlords are less likely to propose deals and concessions.
Pressure from the Government has urged landlords to show forbearance towards tenants struggling to make payments whilst coping with the hit of the pandemic.
If you are a landlord or tenant in need of advice relating to Covid-19, or if you have an upcoming rent review or lease re-gear please feel free to contact the CPRA agency or lease advisory teams on 020 7770 8000 or email email@example.com.