Next commercial rents 'may be late'

20 June 2011

Written by Steve Olejnik

Commercial mortgage holders who are renting out property have been warned some tenants may be having problems with their finances.

Quarter day, when commercial property rent is typically paid, next occurs on June 24th.

As high-profile businesses, such as Focus, recently fell into administration, the Association of Business Recovery Professionals (R3) has said that tough trading conditions earlier in the year could result in this being the day some companies go under.

"A lot of firms used the last of their resources to make it past the March payment date," R3 president Frances Coulson stated, adding that, as recent figures show sales have continued to fall, it looks possible that "we'll see another swathe of retailers reaching the end of the road".

However, she noted that landlords will generally realise it is better to receive some of the money they are owed and to have premises occupied than to receive no rental payments and have unoccupied buildings.

Figures from the Office for National Statistics revealed a decrease of 1.4 per cent in retail sales volume in May 2011 compared with a month previously.

Find out more on our commercial mortgages and how we can help you achieve your aims - enquire online