Retail tenants' rent payments increased by 15% in June
Sixty-one percent of retail tenants had paid their rent as of June 15, a 15% increase over a month ago when just over half anted up, according to the Datex Network Trends report.
“This is a material development. It’s not world-changing, but it’s a hopeful indicator of a slow recovery,” said Datex CEO Mark Sigal.
Just like last month, a slightly greater percentage of national chains came through with the cash than locals, though both categories came in above 60% paid. One year ago at this time, 92% of nationals and 84% of locals had made the rent.
Along with essential providers like supermarkets and drug stores, quick-service restaurants have been stalwarts in making their monthly payments during the pandemic. McDonald’s, Chick-Fil-A, Taco Bell, Chipotle, and Pizza Hut were all more than 90% paid up for June.
Sigal noted that payment percentages have been boosted by tenants that negotiated rent deferrals with their landlords. “If I owe a landlord $10,000 but can only pay him $5,000 and have negotiated a deferral, that does not show up as a delinquency,” he said.
Far fewer national tenants failed to make any rent payments compared to last month. Just 24 Hour Fitness, AMC Theaters, Carters, Century 21, J.C. Penney, L.A. Fitness, and Regal Cinemas showed up in the zero column.
“In regard to some of the folks that strategically did not pay, landlords have gone into litigation against them, though they’re not suing the mom and pops that just don’t have the money,” said Sigal, who thinks few retailers have decided to give up because of the pandemic.
“I spoke with one shopping center owner who has 1,700 tenants and he told me that only 11 have not come back,” he said.