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Commercial Real Estate Live Data
UNITED KINGDOM

Tenant Health Index

Unlock deeper understanding of tenant dynamics.
The Tenant Health Index (THI) provides a clear, data-driven assessment of tenant occupancy health across the United Kingdom.

 

 

The Tenant Health Index reveals a return to stability
for the UK’s commercial property occupiers 

The Tenant Health Index is a new and comprehensive data analysis tool developed to assess the stability and health of commercial property occupiers. Its uses three core streams of metrics that when combined provide a detailed view of the occupier market.

The THI analysed the Industrial, Retail, Office and Hospitality & Leisure sectors in the 12 months to September 2024, using live data from 90,000 leases.  

Key Findings

Average UK CRE Rent Collection Rates (4)

 

  • The average rent collection rate hit 96% across the four asset classes in the 12 months to September 2024, back to pre-covid levels of 2019
  • The average tenant retention rate, the percentage of occupiers remaining after 12 months, stood at 80% 
  • The average rent retention rate, which compares the levels of rent paid by retained tenants to the previous year, was 86%
  • Retail, with an average rent collection rate of 96%, saw the strongest recovery among the four asset classes, bouncing back from historical lows of 44% in 2020
  • All four asset classes had a positive variance between rent to lease retention indicating rental growth 
  • Industrial is the standout sector, with high occupier demand supporting both tenant stability and rent increases 
  • Hospitality & Leisure is showing positive signs of recovery with a healthy tenant retention rate of 83% 
  • Office despite a lower tenant retention rate of 79% still recorded a high rent retention rate of 86%, suggesting that occupiers that stay are willing to pay more for the right space 
  • Retail, battling the flight to online shopping, recorded the lowest occupier retention rate of 74%, reflecting a sector still in flux. But its rent retention rate at 79% indicates some occupiers willing to pay higher rents for prime locations
“The Tenant Health Index reveals encouraging signs of stability for the UK’s commercial property occupiers. Rent collection has returned to pre-pandemic levels, and tenant retention is now in positive territory.
While the Industrial sector remains a strong performer, both Office and Retail are still navigating structural changes, but the outlook is showing positive, if more mixed picture.” — Tom Wallace, CEO of Re-Leased.

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