Tenants continued to struggle with their rental payments at the end of 2020

Commercial tenant payment performance is typically a mirror of the economy and strongly influenced by economic growth as measured by GDP. Tenant payment performance levels tend to be higher when there is economic growth and lower when the economy is struggling.

This tendency was particularly evident in 2020. Although commercial tenant payment performance continued its recovery in the fourth quarter of 2020, it is a long way off from being fully recovered.

This recovered to 56.19% in the third quarter and to 61.2% in the last quarter of 2020, indicating a gradual recovery in tenant payment performance as lockdown restrictions were eased. Tenants in good standing are those who have settled their balance in full, including for additional charges such as parking, utilities, municipal services and arrears.