Commercial Rental Monitor 2021 Q3

Commercial tenant rental payment recovery stalled in the third quarter of 2021, with a slight decline in the percentage of tenants in good standing. This decline comes on the back of four prior quarters of strong recovery out of 2020’s hard lockdowns and deep recession. In the second quarter of 2020, only 50.36% of commercial tenants were in good standing with their landlords. The percentage of total tenants that are in good standing with their landlords with regards to rental payments – those that are either fully paid up, paid late or in a grace period – decreased slightly from 67.12% in the second quarter of 2021 to 66.69% in the third quarter. Of the tenants that are not in good standing, a significant portion (22.36%) did make partial payments, while a lesser 10.96% did not pay at all. The partial payments percentage in the third quarter represents a slight decline from the 22.53% of the previous quarter. The percentage that did not pay at all increased slightly from the 10.35% of the second quarter, but was still significantly down on the 19.73% high of the second quarter of 2020.