Rent collections across property types continue to improve – with the average portfolio collection rate standing at 94.6%, according to the latest NAREIM member survey.

Retail has continued to be the strongest performing sector, with initial collections in August standing at almost 82%, an increase of 7% compared to the prior month collections. Industrial, multifamily and office are all reporting collections of 95%.

The improving landscape for rent collections was also mirrored in expectations for September cashflows – with all NAREIM members anticipating collections next month to remain the same as or be up to 5% better than August.

Concerns remain for the outlook for 2021, with tenants having little idea about future footprint needs, therefore impacting current leasing. “[Tenants are] just putting one foot in front of the other, dealing with the here and now as best they can.”

To read the full survey results, click here.

Highlights of the survey include:

• Initial rent collections were at their highest levels across all property types in August compared to prior initial reports – with collections for industrial, multifamily and office at 95.8%, 95.2% and 95.1% respectively.

• Retail has shown the best month-over-month performance, with 81.8% of rents collected in August versus April, when just half of rents were collected according to initial reports and NAREIM’s member survey.

• Seven out of 10 members expect September rent collections to remain the same as August, while a further 20% expect them to be up to 5% better.

• All real estate investment managers are now using rent deferrals to manage rent relief requests.

The NAREIM survey was conducted between August 17 and September 10 and comprised 15 organizations with an average AUM of $8.8bn.

To read the full survey results, click here.

To read the submitted data, click here.