Good news for landlords as rent collection bounces back strongly

RESEARCH

RENT collection across Australia’s commercial property sector has made a full recovery from the lows reached in the heights of the COVID-19 pandemic...

According to Re-Leased’s latest Tenant Health Index (THI), rent collection has returned to pre-pandemic stability with an average rate across all sectors at 99%, from...

The THI looked at data from Australia’s industrial, hospitality & leisure, office, and retail sectors across more than 80,000 leases...

While industrial remains strong, we’re seeing softened demand in certain areas. Hospitality & Leisure is rebounding with robust tenant retention, and office and retail continue to...

After the turbulence of Covid, inflation, and the cost-of-living crisis, our data signals a strengthening for both landlords and tenants...

Occupier retention rates across all sectors averaged 78%, led by hospitality and leisure with the highest tenant retention at 83%...

While the rent retention rate, which measures the rent paid by retained tenants compared to the previous year, averaged 86% across all sectors...

Retail’s lease-to-rent retention variance was the highest of the CRE sectors at 10.42%, likely reflecting rent increases, larger spaces or investments located in premium locations...

The industrial sector’s rent collection rate was at 99%, with its tenant retention at 78.8% and rent retention at 86%. With rent-to-lease retention variance at 7.4%...

Though a recent report from Savills found that industrial rental growth in Sydney West, Melbourne West and Brisbane Southside has stalled as the market rebalances...

The office sector’s rent collection rate was also at 99%, with tenant retention at 76% and rent retention at 85%. With rent-to-lease retention variance at 9.0%...

In office occupiers are currently chasing smaller premium spaces at higher rates, as the flight to quality trend persists...

In Melbourne, the office market is track for its lowest annual level of sales in 20 years, as the sector continues to lag behind the industrial and retail markets, according to recent data...

While a recent MSCI Capital Trends Report revealed the growing gap between buyer and seller expectations in Melbourne’s office market.

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