If the shop is shut, trading stops – as experienced by the majority of small and medium sized retailers last year, driving retail tenant good standing to a mere 40% in May 2020. Recovery has been the most significant for this sector up to 61% for the first quarter of 2021. But still lagging are the industrial and office sectors. Industrial tenants are flat lining at 66% in good standing, while office tenants are ticking up to 69% of tenants in good standing. Overall, tenants more than two months in arrears have increased from 54.5% to 63.6%; less risky are the 26.4% of delinquent tenants who are less than a month in arrears. This key metric will be important to follow in the coming months to confirm that partial paid tenants are paying down arrears.
