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The Commercial Real Estate Index

Monthly Index | August 2020
Updated as of September 3rd 2020

The CREDIA Index Overview

The CREDIA Index is updated every month and draws on one of the most extensive and live datasets in the commercial property industry, consisting of over 50,000 leases and 20,000 properties.

Delivering greater transparency and insight into the health of the commercial real estate market, the CREDIA Index focuses on occupier performance, leasing trends and national averages to uncover market conditions across asset classes.

RENT PAID WITHIN 30 DAYS OF BEING DUE

Cash is king. Receiving rent in full, as quick as possible, is of utmost important to landlords, property managers and managing agents.
This metric looks at the success of these efforts, displaying the proportion of rent that is collected within 30 days of the monies being due.

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LANDLORD SUBSIDIES


Landlords and managing agents can abate outstanding rent that tenants owe for a number of reasons, most notably during the current COVID-19 crisis.
This process typically occurs after successful negotiations between landlords and tenants have taken place, and a fair and reasonable amount of “credit” to be issued has been agreed upon by both parties.
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AVERAGE LEASE LENGTH (MONTHS)

It is generally accepted that the longer the lease term, the more predictable returns a commercial real estate asset will provide.
This metric measures median lease lengths agreed between a landlord and tenant, which gives insight into recent leasing activity.

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The mean amount of time between commencement and expiry for leases agreed. This is a 3 month rolling average of new leases signed.
The Average Lease Length data does not contain co-working or flex space.

United Kingdom | Index Data Points by Asset Class

Monthly Index | August 2020

UK CREDIA Index | July

Retail Industrial Office All
These figures are compiled from all commercial properties types. They are aggregated from several property types beyond the main three that are specified in the CREDIA Index.
Index Data Point Value MoM Change Value MoM Change Value MoM Change Value MoM Change
WALT (months)
The WALT displays the average time remaining across current leases before expiry. However, leases with higher rents are given greater weighting and contribute to the average expiry profile to a greater extent than those with smaller annual rents
66.0 -0.6% 63.2 9.0% 49.3 3.4% 60.3 3.1%
Rent (£GBP/sqft)
The mean rent charged to active tenants divided by the size of area that they occupy
12.3 0.0% 5.3 -1.9% 12.8 4.1% 8.3 -3.5%
Occupancy (by area count)
The proportion of units/areas within commerical properties that have a tenant with an active lease
73% -1.9% 81% 0.3% 63% 0.1% 70% -0.2%
Occupancy (by area size)
The proportion of lettable area within commerical properties that have a tenant with an active lease
77% 0.8% 48% 8.9% 63% 0.0% 63% 0.9%
Average Lease Lengths (3 month rolling avg)
The Mean amount of time between commencement and expiry for leases agreed between landlords and tenants. This is a 3 month rolling average of new leases signed
63.6 -5.5% 37.0 10.4% 27.7 -12.9% 30.3 1.3%
CREDIA Number for Rent Collection
Rent Collection is traditionally measured on an aged basis, using 7 days, 14 days and 21 days as yardsticks for performance. Using these fundamentals, the CREDIA Magic Number assesses rental collection at each of these stages and applies a scaling multiplier, landing on a score from 0 to 10. A lower score indicates poor rental collection efficiency, while a high score indicates successful debtor management with much of this occurring within a short time span of rent being due.
4.8 14.6% 5.8 11.7% 6.2 10.0% 5.2 11.4%
CREDIA Number for Creditor Payments
Applying the same logic from the propriety CREDIA Rent Payment Score, a similar formula can be applied to the Accounts Payable function within a real estate firm. A strong signal of business health is the liquidity of cash within a company and the speed in which any outstanding debts with external suppliers are settled. By applying a scaling multiplier on the number of days that expense invoices are overdue, a score from 0 to 10 can be assigned. A lower score indicates poor accounts payable efficiency, while a high score indicates successful creditor management.
- - - - - - 9.3 20.9%
Potential Vacancy Risk (by count)
Tenancies can either have a fixed term lease or have a lease that is "rolling", with no agreed expiry. This presents a risk to landlords due to the uncertainty of future occupancy and cash flow. This is a measure of the proportion of leases that are "rolling"
10.4% -4.4% 38.2% -6.4% 19.1% -7.6% 27.2% -6.5%
Potential Vacancy Risk (by % of rent roll)
Tenancies can either have a fixed term lease or have a lease that is "rolling", with no agreed expiry. This presents a risk to landlords due to the uncertainty of future occupancy and cash flow. This is a measure of the proportion of rent is contributed by tenants on a lease that is "rolling"
2.4% -1.8% 9.8% -4.2% 5.6% -0.1% 6.3% -2.0%
Overdue Rent (as % of rent roll)
The volume of rent arrears compared to total annual rent
9.8% -0.4% 2.8% -0.8% 6.1% -0.6% 5.9% -0.3%
Overdue Rent (1-30 days overdue)
The volume of rent arrears between 1 and 30 days old compared to total annual rent
0.3% 0.2% 0.5% 0.3% 0.4% 0.3% 0.4% 0.3%
Overdue Rent (31-90 days overdue)
The volume of rent arrears 31 and 90 days old compared to total annual rent
2.6% -0.7% 1.1% -0.9% 1.4% -0.4% 1.7% -0.6%
Overdue Rent (90+ days overdue)
The volume of rent arrears more than 91 days old compared to total annual rent
6.9% 0.1% 1.3% 0.0% 4.3% -0.5% 3.8% 0.0%
Potential Bad Debt Indicator
The proportion of rent arrears that stem from tenants that no longer have a current lease. This provides as an early indicator of bad debt as these tenants are no longer occupants
4.0% 0.0% 0.3% 0.0% 2.7% 0.0% 1.8% 0.0%
Rent Paid within 30 days of being due
Receiving rent in full, as quick as possible, is of utmost important to landlords, property managers and managing agents. This metric looks at the success of these efforts, displaying the proportion of rent that is collected within 30 days of the monies being due.
57.4% 2.2% 51.2% -4.8% 33.5% -30.6% 47.0% -9.6%
Landlord Subsidies
Landlords and managing agents can abate outstanding rent that tenants owe for a number of reasons, most notably during the current COVID-19 crisis. This process typically occurs after successful negotiations between landlords and tenants have taken place, and a fair and reasonable amount of credit to be issued has been agreed upon by both parties.
0.3% -0.6% 0.3% 0.1% 0.5% 0.0% 0.6% -0.3%

Australia | Index Data Points by Asset Class

Monthly Index | August 2020

AU CREDIA Index | July
 
Retail Industrial Office All
These figures are compiled from all commercial properties types. They are aggregated from several property types beyond the main three that are specified in the CREDIA Index.
Index Data Point Value MoM Change Value MoM Change Value MoM Change Value MoM Change
WALE (months)
The WALT displays the average time remaining across current leases before expiry. However, leases with higher rents are given greater weighting and contribute to the average expiry profile to a greater extent than those with smaller annual rents
31.8 1.3% 24.1 1.7% 25.2 -0.8% 27.8 0.7%
Rent ($AUD/m2)
The mean rent charged to active tenants divided by the size of area that they occupy
270.1 0.5% 111.8 0.3% 284.0 0.0% 195.6 0.6%
Occupancy (by area count)
The proportion of units/areas within commerical properties that have a tenant with an active lease
78% 0.1% 82% 0.3% 71% 0.2% 73% 0.1%
Occupancy (by area size)
The proportion of lettable area within commerical properties that have a tenant with an active lease
81% -0.1% 82% 0.4% 75% 0.2% 83% 0.0%
Average Lease Lengths (3 month rolling avg)
The Mean amount of time between commencement and expiry for leases agreed between landlords and tenants. This is a 3 month rolling average of new leases signed
33.4 2.1% 23.9 11.7% 24.6 5.6% 26.5 0.0%
CREDIA Number for Rent Collection
Rent Collection is traditionally measured on an aged basis, using 7 days, 14 days and 21 days as yardsticks for performance. Using these fundamentals, the CREDIA Magic Number assesses rental collection at each of these stages and applies a scaling multiplier, landing on a score from 0 to 10. A lower score indicates poor rental collection efficiency, while a high score indicates successful debtor management with much of this occurring within a short time span of rent being due.
5.3 17.5% 7.0 5.8% 7.1 3.2% 6.4 9.4%
CREDIA Number for Creditor Payments
Applying the same logic from the propriety CREDIA Rent Payment Score, a similar formula can be applied to the Accounts Payable function within a real estate firm. A strong signal of business health is the liquidity of cash within a company and the speed in which any outstanding debts with external suppliers are settled. By applying a scaling multiplier on the number of days that expense invoices are overdue, a score from 0 to 10 can be assigned. A lower score indicates poor accounts payable efficiency, while a high score indicates successful creditor management.
- - - - - - 9.3 0.3%
Potential Vacancy Risk (by count)
Tenancies can either have a fixed term lease or have a lease that is "rolling", with no agreed expiry. This presents a risk to landlords due to the uncertainty of future occupancy and cash flow. This is a measure of the proportion of leases that are "rolling"
12.3% -1.3% 17.3% -1.2% 13.6% -4.4% 15.9% -2.6%
Potential Vacancy Risk (by % of rent roll)
Tenancies can either have a fixed term lease or have a lease that is "rolling", with no agreed expiry. This presents a risk to landlords due to the uncertainty of future occupancy and cash flow. This is a measure of the proportion of rent is contributed by tenants on a lease that is "rolling"
7.4% -0.2% 8.7% 0.2% 5.9% -1.5% 7.3% -0.6%
Overdue Rent (as % of rent roll)
The volume of rent arrears compared to total annual rent
7.6% 0.4% 2.8% 0.4% 2.2% 0.2% 3.8% 0.4%
Overdue Rent (1-30 days overdue)
The volume of rent arrears between 1 and 30 days old compared to total annual rent
0.4% 0.0% 0.5% 0.1% 0.2% 0.0% 0.3% 0.0%
Overdue Rent (31-90 days overdue)
The volume of rent arrears 31 and 90 days old compared to total annual rent
2.5% 0.0% 1.2% 0.1% 1.0% 0.1% 1.4% 0.1%
Overdue Rent (90+ days overdue)
The volume of rent arrears more than 91 days old compared to total annual rent
4.6% 0.3% 1.2% 0.3% 1.0% 0.1% 2.1% 0.3%
Potential Bad Debt Indicator
The proportion of rent arrears that stem from tenants that no longer have a current lease. This provides as an early indicator of bad debt as these tenants are no longer occupants
1.4% 0.0% 0.4% 0.0% 0.3% -0.1% 0.7% 0.1%
Rent Paid within 30 days of being due
Receiving rent in full, as quick as possible, is of utmost important to landlords, property managers and managing agents. This metric looks at the success of these efforts, displaying the proportion of rent that is collected within 30 days of the monies being due.
64.4% 5.4% 81.4% 1.5% 80.0% 1.2% 74.5% 3.2%
Landlord Subsidies
Landlords and managing agents can abate outstanding rent that tenants owe for a number of reasons, most notably during the current COVID-19 crisis. This process typically occurs after successful negotiations between landlords and tenants have taken place, and a fair and reasonable amount of credit to be issued has been agreed upon by both parties.
4.1% -1.8% 2.1% -1.2% 2.7% -0.5% 3.2% -0.9%

New Zealand | Index Data Points by Asset Class

Monthly Index | August 2020

NZ CREDIA Index | July
 
Retail Industrial Office All
These figures are compiled from all commercial properties types. They are aggregated from several property types beyond the main three that are specified in the CREDIA Index.
Index Data Point Value MoM Change Value MoM Change Value MoM Change Value MoM Change
WALE (months)
The WALT displays the average time remaining across current leases before expiry. However, leases with higher rents are given greater weighting and contribute to the average expiry profile to a greater extent than those with smaller annual rents
45.4 -0.7% 37.8 -2.6% 35.8 -0.6% 40.0 -1.2%
Rent ($NZD/m2)
The mean rent charged to active tenants divided by the size of area that they occupy
244.8 0.5% 135.2 -0.3% 283.7 0.2% 220.2 -0.5%
Occupancy (by area count)
The proportion of units/areas within commerical properties that have a tenant with an active lease
79% -0.5% 80% 0.0% 75% 0.0% 77% 0.3%
Occupancy (by area size)
The proportion of lettable area within commerical properties that have a tenant with an active lease
75% 31.4% 78% 0.9% 61% -4.9% 54% 4.6%
Average Lease Lengths (3 month rolling avg)
The Mean amount of time between commencement and expiry for leases agreed between landlords and tenants. This is a 3 month rolling average of new leases signed
37.8 -21.4% 17.8 -55.4% 24.7 -3.9% 24.9 -26.1%
CREDIA Number for Rent Collection
Rent Collection is traditionally measured on an aged basis, using 7 days, 14 days and 21 days as yardsticks for performance. Using these fundamentals, the CREDIA Magic Number assesses rental collection at each of these stages and applies a scaling multiplier, landing on a score from 0 to 10. A lower score indicates poor rental collection efficiency, while a high score indicates successful debtor management with much of this occurring within a short time span of rent being due.
7.5 20.8% 8.3 2.2% 8.4 0.5% 8.0 8.7%
CREDIA Number for Creditor Payments
Applying the same logic from the propriety CREDIA Rent Payment Score, a similar formula can be applied to the Accounts Payable function within a real estate firm. A strong signal of business health is the liquidity of cash within a company and the speed in which any outstanding debts with external suppliers are settled. By applying a scaling multiplier on the number of days that expense invoices are overdue, a score from 0 to 10 can be assigned. A lower score indicates poor accounts payable efficiency, while a high score indicates successful creditor management.
- - - - - - 9.4 -1.5%
Potential Vacancy Risk (by count)
Tenancies can either have a fixed term lease or have a lease that is "rolling", with no agreed expiry. This presents a risk to landlords due to the uncertainty of future occupancy and cash flow. This is a measure of the proportion of leases that are "rolling"
5.8% -3.6% 7.8% -14.4% 10.9% -4.3% 9.1% -7.2%
Potential Vacancy Risk (by % of rent roll)
Tenancies can either have a fixed term lease or have a lease that is "rolling", with no agreed expiry. This presents a risk to landlords due to the uncertainty of future occupancy and cash flow. This is a measure of the proportion of rent is contributed by tenants on a lease that is "rolling"
3.1% -0.6% 5.2% -0.4% 3.3% -2.6% 3.5% -1.8%
Overdue Rent (as % of rent roll)
The volume of rent arrears compared to total annual rent
3.0% 0.1% 1.9% 0.1% 3.3% 0.1% 2.7% 0.1%
Overdue Rent (1-30 days overdue)
The volume of rent arrears between 1 and 30 days old compared to total annual rent
0.2% 0.1% 0.1% 0.0% 0.1% 0.0% 0.1% 0.0%
Overdue Rent (31-90 days overdue)
The volume of rent arrears 31 and 90 days old compared to total annual rent
0.5% -0.1% 0.5% 0.1% 0.4% 0.0% 0.4% 0.0%
Overdue Rent (90+ days overdue)
The volume of rent arrears more than 91 days old compared to total annual rent
2.3% 0.1% 1.4% 0.0% 2.8% 0.0% 2.2% 0.1%
Potential Bad Debt Indicator
The proportion of rent arrears that stem from tenants that no longer have a current lease. This provides as an early indicator of bad debt as these tenants are no longer occupants
0.6% 0.0% 0.5% 0.0% 1.1% 0.0% 0.7% 0.0%
Rent Paid within 30 days of being due
Receiving rent in full, as quick as possible, is of utmost important to landlords, property managers and managing agents. This metric looks at the success of these efforts, displaying the proportion of rent that is collected within 30 days of the monies being due.
83.8% 7.8% 88.1% -1.1% 87.3% 0.3% 85.3% 3.0%
Landlord Subsidies
Landlords and managing agents can abate outstanding rent that tenants owe for a number of reasons, most notably during the current COVID-19 crisis. This process typically occurs after successful negotiations between landlords and tenants have taken place, and a fair and reasonable amount of credit to be issued has been agreed upon by both parties.
4.4% -5.8% 1.4% -2.2% 1.5% -2.8% 2.5% -3.9%

Global Average | Index Data Points by Asset Class

Monthly Index | August 2020

Global CREDIA Index | July

Retail Industrial Office All
These figures are compiled from all commercial properties types. They are aggregated from several property types beyond the main three that are specified in the CREDIA Index.
Index Data Point Value MoM Change Value MoM Change Value MoM Change Value MoM Change
WALT (months)
The WALT displays the average time remaining across current leases before expiry. However, leases with higher rents are given greater weighting and contribute to the average expiry profile to a greater extent than those with smaller annual rents
41.0 -0.2% 36.0 5.6% 32.6 0.6% 36.9 0.8%
Occupancy (by area count)
The proportion of units/areas within commerical properties that have a tenant with an active lease
77% -0.7% 82% 0.2% 68% 0.0% 72% 0.0%
Occupancy (by area size)
The proportion of lettable area within commerical properties that have a tenant with an active lease
78% 14.3% 59% 4.4% 66% -1.5% 65% 1.2%
Average Lease Lengths (3 month rolling avg)
The Mean amount of time between commencement and expiry for leases agreed between landlords and tenants. This is a 3 month rolling average of new leases signed
37.6 -7.2% 28.1 0.0% 25.2 -1.9% 27.4 -5.2%
CREDIA Number for Rent Collection
Rent Collection is traditionally measured on an aged basis, using 7 days, 14 days and 21 days as yardsticks for performance. Using these fundamentals, the CREDIA Magic Number assesses rental collection at each of these stages and applies a scaling multiplier, landing on a score from 0 to 10. A lower score indicates poor rental collection efficiency, while a high score indicates successful debtor management with much of this occurring within a short time span of rent being due.
5.7 11.3% 7.0 -0.5% 7.6 1.8% 6.6 4.1%
CREDIA Number for Creditor Payments
Applying the same logic from the propriety CREDIA Rent Payment Score, a similar formula can be applied to the Accounts Payable function within a real estate firm. A strong signal of business health is the liquidity of cash within a company and the speed in which any outstanding debts with external suppliers are settled. By applying a scaling multiplier on the number of days that expense invoices are overdue, a score from 0 to 10 can be assigned. A lower score indicates poor accounts payable efficiency, while a high score indicates successful creditor management.
- - - - - - 9.3 -1.5%
Potential Vacancy Risk (by count)
Tenancies can either have a fixed term lease or have a lease that is "rolling", with no agreed expiry. This presents a risk to landlords due to the uncertainty of future occupancy and cash flow. This is a measure of the proportion of leases that are "rolling"
10.3% -2.7% 24.2% -6.4% 14.3% -6.7% 17.2% -6.8%
Potential Vacancy Risk (by % of rent roll)
Tenancies can either have a fixed term lease or have a lease that is "rolling", with no agreed expiry. This presents a risk to landlords due to the uncertainty of future occupancy and cash flow. This is a measure of the proportion of rent is contributed by tenants on a lease that is "rolling"
5.4% -0.6% 7.8% -0.7% 4.9% -1.7% 5.9% -1.3%
Overdue Rent (as % of rent roll)
The volume of rent arrears compared to total annual rent
5.7% 0.2% 2.3% 0.0% 3.3% 0.0% 2.6% -0.9%
Overdue Rent (1-30 days overdue)
The volume of rent arrears between 1 and 30 days old compared to total annual rent
0.3% 0.1% 0.3% 0.1% 0.2% 0.1% 0.2% 0.0%
Overdue Rent (31-90 days overdue)
The volume of rent arrears 31 and 90 days old compared to total annual rent
1.6% -0.1% 0.8% -0.2% 0.7% -0.1% 0.7% -0.4%
Overdue Rent (90+ days overdue)
The volume of rent arrears more than 91 days old compared to total annual rent
3.8% 0.2% 1.1% 0.0% 2.4% 0.0% 1.7% -0.5%
Potential Bad Debt Indicator
The proportion of rent arrears that stem from tenants that no longer have a current lease. This provides as an early indicator of bad debt as these tenants are no longer occupants
1.4% 0.1% 0.4% 0.0% 1.1% 0.0% 0.6% -0.3%
Rent Paid within 30 days of being due
Receiving rent in full, as quick as possible, is of utmost important to landlords, property managers and managing agents. This metric looks at the success of these efforts, displaying the proportion of rent that is collected within 30 days of the monies being due.
67.9% 7.4% 77.2% 2.5% 76.4% 1.2% 73.9% 5.0%
Landlord Subsidies
Landlords and managing agents can abate outstanding rent that tenants owe for a number of reasons, most notably during the current COVID-19 crisis. This process typically occurs after successful negotiations between landlords and tenants have taken place, and a fair and reasonable amount of credit to be issued has been agreed upon by both parties.
3.7% -1.7% 1.6% -0.9% 1.9% -0.5% 2.6% -1.0%

Retail Industrial Office All
These figures are compiled from all commercial properties types. They are aggregated from several property types beyond the main three that are specified in the CREDIA Index.
Index Data Point Value MoM Change Value MoM Change Value MoM Change Value MoM Change

Aks

Market Analysis

CREDIA Efficiency Metrics

 

CREDIA MAGIC NUMBER
A rent collection efficiency metric
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Rent collection is traditionally measured on an aged basis, using 7 days, 14 days and 21 days as yardsticks for performance. The CREDIA Magic Number assesses rental collection at each stage and applies a scaling multiplier to produce a score from 0 to 10. A lower score indicates poor rental collection efficiency, while a high score indicates successful debtor management.

credia number chart
CREDIA CREDITOR SCORE
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The same proprietary logic used to produce the CREDIA Magic Number can be applied to Accounts Payable. Liquidity and the speed of payments to suppliers signals a healthy business. Applying a scaling multiplier to the number of days that expense invoices are overdue leads to a score from 0 to 10. A lower score indicates poor accounts payable efficiency, while a high score indicates successful creditor management.

credia number chart

CREDIA Features and Press

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propertyweek2
new-place-logo
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costar
nbr
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financial times
The Telegraph
 
CREDIA Spotlights | Market Insight Reports

Insights-reports-unitedkingdom

UK | June QTR Rent Collection

Day 21 Analysis

COVID-19 Rent Collection Impact Report reflects real-time trends for commercial rent collection in the United Kingdom.

› Download here

AUS-Insights-reports

AU | Rent Collection Report

COVID-19 Impact Analysis

COVID-19 Rent Collection Impact Report reflects real-time trends for commercial rent collection in Australia.

› Download here

Insights-reports-newzealand

NZ | Rent Collection Report

COVID-19 Impact Analysis

COVID-19 Rent Collection Impact Report reflects real-time trends for commercial rent collection in New Zealand.

› Download here

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Data Philosophy
  1. The data presented in the index is aggregated and anonymised, drawn from tens of thousands of live data points included from the real-time operation of the Re-Leased Commercial Real Estate Management Software Platform.
  2. For the avoidance of doubt, aggregated data will never include personal data.
  3. The information set forth in The CREDIA Index is provided for informational and discussion purposes only and is not intended to be, and shall not be regarded or construed as, a recommendation for a transaction or investment or financial, tax, investment or other advice of any kind by Re-Leased. Re-Leased makes no warranty or representation regarding any such information or the data presented in such materials.