In April, Colliers Real Estate Management Services (REMS) initiated a national assessment of the tenants in our managed portfolio and released a report examining the key drivers behind rent relief requests.
We continued our assessment in May, surveying our 7,100 office, retail and industrial tenants across 66 million square feet of commercial real estate in Canada. May's report, Rent Collection and Relief Status, examines rent relief duration, rent collection status and the types of tenants submitting rent relief requests.
- 16% of commercial tenants did not pay rent in May.
- Of the tenants who requested rent relief, 23% were able to negotiate direct relief agreements with their landlords outside of the Canada Emergency Commercial Rent Assistance (CECRA) program. Of that number, 94% were granted deferrals and 6% were granted rent abatements.
- The most common relief duration is three months, with 46% of tenants being granted this length of relief, 28% granted two months of relief and 18% granted one month of relief.
- Retail tenants are most likely to have come to an agreement on rent deferrals (18%), followed by industrial tenants (14%) and then office tenants (11%).