29th September 2008
A retail group is stepping up its campaign asking commercial landlords to abandon the "anachronistic" practice of quarterly rent bills to give the high street a boost.
The latest call from the British Retail Consortium (BRC) comes after an announcement by pension fund investment manager Hermes, which has said that for existing leases it will now be collecting monthly rent, in advance, instead of quarterly payments.
Currently quarterly rents are collected in advance on 'quarter days' each year, which include today.
But according to BRC, this is an out-of-date practice that is "wrong in principle" and "has no place in the modern world", particularly in light of the current economic difficulties.
While monthly terms are now usual for new and re-signed leases, Hermes is the first major landlord to agree to renegotiate its existing leases.
Director-general Stephen Robertson said: "The dam has burst.
"Hermes' move shows there is no principled or practical reason why landlords cannot offer this flexibility.
"By agreeing to a fairer rents regime, landlords will be contributing to the retail prosperity on which they themselves depend."
IMAGEPA
Call to halt "anachronistic"commercial rent practice
The latest call from the British Retail Consortium (BRC) comes after an announcement by pension fund investment manager Hermes, which has said that for existing leases it will now be collecting monthly rent, in advance, instead of quarterly payments.
Currently quarterly rents are collected in advance on 'quarter days' each year, which include today.
But according to BRC, this is an out-of-date practice that is "wrong in principle" and "has no place in the modern world", particularly in light of the current economic difficulties.
While monthly terms are now usual for new and re-signed leases, Hermes is the first major landlord to agree to renegotiate its existing leases.
Director-general Stephen Robertson said: "The dam has burst.
"Hermes' move shows there is no principled or practical reason why landlords cannot offer this flexibility.
"By agreeing to a fairer rents regime, landlords will be contributing to the retail prosperity on which they themselves depend."
IMAGEPA
Tags: Landlord
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