Rent arrears moratorium threatens commercial property landlords

Tenants, landlords and lenders must work together to avoid mounting rent arrears, says James Liddiment of Duff & Phelps as he investigates the options, including a move to turnover-based payments as Covid work patterns undermine commercial office space

Tenants, particularly those operating in the leisure and hospitality industry, will have welcomed the announcement on 16 September confirming the Covid-19 forfeiture moratorium will now run until the end of 2020.

The extension was no great surprise, with increasing local lockdowns and the prospect of businesses being wiped out with the September quarter day (September 29) looming and the potential for nine months of rent being payable on October 1, when the moratorium was due to end.

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