Two in three retailers overdue on April rent; landlords concerned
Around two in every three retailers in the Netherlands have not paid their full rent for April, real estate advisers told BNR Nieuwsradio on Tuesday. This comes as lockdown measures to curb the spread of Covid-19 remain in place, forcing many shops to either shut their doors or severely limit the number of people on the premises, and thus reducing sales for those which remain in business.
According to real estate providers Savills and Cushman & Wakefield, an estimated 70 percent of retailers have failed to pay their full rent this month, prompting concern among landlords needing to make mortgage payments.
“Many landlords are receiving only a fraction of their rental income," Savills advisor Jordy Diepeveen pointed out. "They also have payment obligations. They also have to pay off their loans from the bank."
The details were revealed weeks after real estate industry organizations and the government issued guidelines on Apr. 10 concerning assistance for retailers in the wake of the Covid-19 pandemic. These include a partial suspension of rent payments for the months of April, May and June, as well as a suspension of evictions if the retailer can prove that they are unable to cough up the rent due to the Covid-19 crisis.
However, the agreements are non-binding, leaving the door open for real estate landlords and retailers to come to their own agreements separately.