This time a week ago, my inbox was buzzing with emails from lawyers, surveyors, agents and more all predicting a rout in the coming weeks as retailers broke their backs to pay this quarter’s rent. Seven days later, and despite the fear, landlords are making very positive noises.
Most tell me that they have already had the majority of their due rent and the retailers that are struggling approached them in plenty of time to find a decent solution.
That’s not to say that retailers haven’t found the going rough - what seems to have happened in the most part is that both sides have done the right thing and conducted their business openly and honestly.
Of course the rent was only due six days ago and retailers still have a week or so to pay, so we mustn’t get too complacent, but the news so far is all pretty positive.
What this shows, even if there is a major upset around the corner, is that most retailers have made sure they take care of the rent one way or the other.
Even JJB Sports, despite announcing a CVA last week, has paid up with the whole three months’ rent. The bottom line, retailers clearly believe, is getting the issue solved rather than letting it drag along, and landlords should give them credit for this.
Nobody likes the idea of being in a recession, but one silver lining is that landlords are being forced to climb down from the positions they’ve held so rigidly for years.
Payment periods, service charges and rental levels and almost every other aspect of a lease are now open for discussion and a retailer in the right place at the right time can take full advantage.
This time next week, we will have most of the picture of any damage last week’s rent bill has done, and I’m not ruling out an unpleasant shock between now and then - but so far so good.
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