Property news from around the UK and beyond
MARKET COMMENT, RESEARCH & OPINION
£6.4 billion shortfall in rental income for commercial property investors since start of the pandemic
There was another 20% shortfall in the payment of rents by business tenants during the March Quarter 2021, with the total outstanding owed to landlords and investors estimated at £6.4 billion according to the latest figures published by Remit Consulting.
The transaction volume of office real estate in Europe (including the UK) remained relatively stable in the first half of 2020 at a total of around €39.7 billion despite the ongoing corona pandemic. However, the volume is declining in the countries with long lockdown phases, which were heavily affected by COVID-19, according to research published by Catella Property GmbH.
GOVERNMENT MORATORIUM ON COLLECTING LATE RENT CONTINUES TO DRIVE BEHAVIOUR OF MANY LARGER TENANTS IN RETAIL AND LEISURE SECTORS
The government’s moratorium on taking legal action against tenants is changing the behaviour of many commercial tenants according to research compiled by Remit Consulting that also shows the amount of rent and service charges collected for commercial properties on June Quarter Day were even lower than in the previous quarter.
Investors, fed up with the status quo, are willing to take risks on new business models.
The current model of property management is no longer fit for purpose and traditional property managers have five years to adapt if they are to remain relevant, according to the latest REMark report from Remit Consulting, the biennial study that benchmarks the performance of the property management sector in the UK.