Real Estate Leasing Trends

Tenant health refers to the financial strength, payment behaviour, and renewal likelihood of commercial tenants. It is measured using indicators like rent collection, tenant retention, rent retention, and payment timeliness.

It matters because tenant health directly affects cashflow stability, portfolio valuation, occupancy levels, and risk exposure for landlords and investors. Strong tenant health signals predictable income streams, reduced arrears risk, and a more resilient property portfolio.

Rent collection rates measure the percentage of rent successfully collected within a defined period, usually a month, quarter, or year.

Formula: Collected Rent ÷ Total Rent Due × 100

High collection rates indicate strong payment discipline, dependable tenants, and low arrears risk one of the most important early signals of market stability.

Tenant retention measures the percentage of tenants who choose to renew their lease at expiry.
High retention matters because it reduces vacancy downtime, limits re-leasing costs, maintains income continuity, and strengthens the long-term performance of a commercial property. Retention is one of the best indicators of tenant satisfaction and market confidence.

Rent retention measures how much rental income is preserved after a lease renewal, compared to the previous lease.
Tenant retention measures whether the tenant stayed.
A property can have high tenant retention but low rent retention if landlords agree to discounted rents or incentives to keep tenants - a key dynamic reflected in markets where pricing power softens.

Rent-to-lease retention variance measures the gap between rent retention and tenant retention.
A large variance suggests landlords are making bigger pricing concessions to maintain occupancy.
A smaller variance indicates a healthier balance where landlords are retaining tenants and revenue, signalling pricing strength and market stability.

Rising interest rates, operating costs, and economic slowdown can impact tenants’ ability to pay rent or commit to renewals.
Common impacts include:

• Lower rent retention as tenants negotiate concessions

• Increased turnover in vulnerable sectors (e.g., hospitality)

• Longer negotiation cycles

• Stronger performance in resilient sectors like industrial
  Tracking tenant health helps landlords understand how macro conditions translate into operational outcomes.

The data is sourced from live rent-payment records and active lease agreements within Re-Leased and represents a broad cross-section of commercial assets across the United Kingdom, Australia, and New Zealand.

All data has been aggregated and anonymised in accordance with Re-Leased’s Terms and Conditions at the time of publishing. 

Our analysis focuses on collection rates, tenant retention, rent retention, and rent-to-lease variance, examining both absolute performance and year-over-year percentage changes. Particular attention is given to material shifts in payment behaviour and renewal outcomes, offering a view of tenant health that complements and often precedes traditional market indicators.