A total of 16% of commercial tenants in Canada did not pay their rent in May, according to Colliers Canada.
The real estate services company said it resurveyed 7,100 tenants across the country in May as a follow-up to an April survey that showed 21% of commercial tenants failed to pay rent as the COVID-19 pandemic lock downs harmed businesses.
Of the tenants that requested rent relief in April, only 42% paid full rent, while 39% didn’t pay at all and 19% made partial payments. Colliers Canada said a further decline in rent collections is expected this month before improving in July and August as business re-openings gather steam. Colliers anticipates a six-week lag between reopening dates and a rise in rent collections.
In its survey, Colliers also found that of the tenants that requested rent relief in April, 23% were able to negotiate direct relief agreements with their landlords.
