The September rent quarter day passed yesterday and, despite ongoing pressures on the high street, the general consensus amongst retail landlords is that it won’t be marked by a raft of major retailer collapses.
Colliers International was upbeat today saying that it collected 94% of high street retail rents on the due date compared with 85% 12 months earlier.
Colliers’ head of investment property management Mark Jarrett said: “Despite the pressures on the high street, we have found that nearly all rental payments have been processed on or before quarter day and retailers are proving to be surprisingly resilient.”
There have been a couple of casualties in the last few days however. Liquidators were appointed to variety store retailer Hub, which was launched in 2010 by Poundland co-founder Dave Dodd, and administrators at BDO were appointed to electronics retailer Sonex Communications, the company behind 16 Sony Centre stores.
The September quarter day rent cheque is a tough one for retailers to write out as they are also buying stock for Christmas. However, banks are likely to be more lenient towards struggling retailer clients this quarter to allow them to make the most of the traditionally busy trading period.
One major retail landlord said this week: “I think this rent quarter day will be fine. Normally you hear noise – requests to pay rent monthly or delay payment – but I’ve heard nothing. The issue will be what happens in January.”