Monthly rents could become permanent
Monthly rental payments could become a permanent fixture for shop operators who originally switched from quarterly terms due to the recession.
That’s the view of property agent Christie & Co, which reports that the arrangements have helped to keep many businesses afloat during the economic downturn.
It says that over the last 18 months, retailers have been requesting assistance from landlords to ease the financial burden, either by seeking straightforward rental concessions or negotiating monthly rental terms.
Christies reports that the flexibility shown by landlords and the success of the change to monthly rental terms could see the return to quarterly rental payments postponed during a gradual recovery or in some cases indefinitely.
Head of rent reviews Stephen Owen said: “Landlords and tenants have appeared to have accepted that monthly rents are not a short-term fix and are here to stay in the short to medium term, and maybe even longer.”