Monthly Index | April 2021
Updated as of May 11th 2021
Last Updated July 14th at 8am BST 2020 | Monthly Updates
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.
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.
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.
Monthly Index | April 2021
| 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
|
63.0 | -0.3% | 59.5 | -0.8% | 50.4 | -0.2% | 58.0 | -0.5% |
|
Rent (£GBP/sqft) ⓘ
The mean rent charged to active tenants divided by the size of area that they occupy
|
12 | 0.0% | 5.4 | 0.0% | 11.7 | 0.0% | 8 | 0.0% |
|
Occupancy (by area count) ⓘ
The proportion of units/areas within commerical properties that have a tenant with an active lease
|
79.0% | -0.1% | 83.1% | 0.9% | 65.2% | -0.4% | 72.7% | 0.4% |
|
Occupancy (by area size) ⓘ
The proportion of lettable area within commerical properties that have a tenant with an active lease
|
80.8% | 1.4% | 51.4% | 1.6% | 66.5% | 0.1% | 76.4% | 0.6% |
|
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
|
71.5 | -1.0% | 39.3 | -2.5% | 31.9 | 5.3% | 30.6 | -2.9% |
|
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.
|
4.5 | -19.7% | 5.5 | -17.4% | 6.1 | -4.4% | 5.1 | -13.0% |
|
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.
|
8.1 | 5.5% | ||||||
|
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"
|
11.1% | 0.0% | 36.2% | -0.1% | 22.4% | 0.2% | 30.3% | 0.2% |
|
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"
|
4.0% | 0.1% | 8.5% | -0.5% | 7.8% | 0.1% | 7.5% | -0.2% |
|
Overdue Rent (as % of rent roll) ⓘ
The volume of rent arrears compared to total annual rent
|
13.5% | -1.3% | 7.7% | -0.9% | 7.8% | -1.7% | 9.0% | -1.1% |
|
Overdue Rent (1-30 days overdue) ⓘ
The volume of rent arrears between 1 and 30 days old compared to total annual rent
|
0.6% | -5.6% | 0.9% | -3.5% | 0.3% | -3.4% | 0.7% | -3.5% |
|
Overdue Rent (31-90 days overdue) ⓘ
The volume of rent arrears 31 and 90 days old compared to total annual rent
|
5.3% | 4.4% | 3.4% | 1.3% | 2.3% | 1.8% | 3.3% | 2.2% |
|
Overdue Rent (90+ days overdue) ⓘ
The volume of rent arrears more than 91 days old compared to total annual rent
|
7.6% | -0.1% | 3.3% | 1.2% | 5.2% | -0.2% | 5.0% | 0.2% |
|
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
|
3.2% | 0.0% | 0.4% | 0.0% | 3.1% | 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.
|
61.4% | 4.8% | 57.9% | 14.4% | 66.2% | 23.8% | 57.6% | 11.2% |
|
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.
|
0.9% | 0.2% | 0.1% | 0.0% | 0.9% | 0.7% | 0.6% | 0.1% |
|
Lease Continuation ⓘ
|
20.6% | -10.2% | 26.6% | 4.3% | 27.5% | 0.3% | 25.3% | -1.1% |
|
Void Length ⓘ
|
560.7 | 0.0% | 339.9 | 0.0% | 396.8 | 0.0% | 464.1 | 0.0% |
Monthly Index | April 2021
| 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
|
31.3 | -0.3% | 23.1 | 0.0% | 24.9 | -1.2% | 27.6 | -0.4% |
|
Rent ($AUD/m2) ⓘ
The mean rent charged to active tenants divided by the size of area that they occupy
|
259.7 | 0.2% | 113.2 | 0.4% | 267.3 | -1.1% | 194.4 | -0.2% |
|
Occupancy (by area count) ⓘ
The proportion of units/areas within commerical properties that have a tenant with an active lease
|
78.4% | -0.2% | 84.3% | 0.0% | 72.0% | 0.3% | 73.9% | 0.0% |
|
Occupancy (by area size) ⓘ
The proportion of lettable area within commerical properties that have a tenant with an active lease
|
57.2% | 0.2% | 80.0% | 0.2% | 74.9% | -0.5% | 80.4% | 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% | 22.9 | -0.9% | 24.6 | 2.9% | 26.6 | 3.9% |
|
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.
|
6.8 | 0.4% | 7.5 | -2.8% | 7.8 | -2.8% | 7.3 | -0.8% |
|
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.
|
9.5 | 7.5% | ||||||
|
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"
|
13.5% | 0.7% | 22.6% | 0.3% | 16.1% | 0.5% | 18.0% | 0.4% |
|
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"
|
8.7% | 0.3% | 10.3% | 0.1% | 7.4% | 0.3% | 8.5% | 0.3% |
|
Overdue Rent (as % of rent roll) ⓘ
The volume of rent arrears compared to total annual rent
|
7.6% | 0.1% | 3.0% | 0.1% | 2.5% | -0.2% | 4.1% | 0.1% |
|
Overdue Rent (1-30 days overdue) ⓘ
The volume of rent arrears between 1 and 30 days old compared to total annual rent
|
1.2% | 0.7% | 0.8% | 0.4% | 0.5% | 0.3% | 0.8% | 0.5% |
|
Overdue Rent (31-90 days overdue) ⓘ
The volume of rent arrears 31 and 90 days old compared to total annual rent
|
1.3% | -0.7% | 0.6% | -0.4% | 0.5% | -0.6% | 0.7% | -0.5% |
|
Overdue Rent (90+ days overdue) ⓘ
The volume of rent arrears more than 91 days old compared to total annual rent
|
5.2% | 0.1% | 1.6% | 0.1% | 1.4% | 0.0% | 2.6% | 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
|
1.6% | 0.0% | 0.5% | 0.1% | 0.4% | -0.1% | 0.8% | 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.
|
81.2% | 0.2% | 89.5% | 0.6% | 89.4% | 1.0% | 86.3% | 0.6% |
|
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.
|
1.5% | 0.4% | 1.6% | 0.6% | 0.7% | 0.0% | 1.1% | 0.3% |
|
Lease Continuation ⓘ
|
35.1% | -5.0% | 41.7% | -1.2% | 29.4% | -10.2% | 34.7% | -5.2% |
|
Void Length ⓘ
|
295.0 | 0.0% | 223.3 | 0.0% | 322.4 | 0.0% | 343.5 | 0.0% |
Monthly Index | April 2021
| 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
|
43.7 | 0.2% | 38.6 | -1.3% | 36.2 | 1.1% | 40.1 | 0.3% |
|
Rent ($NZD/m2) ⓘ
The mean rent charged to active tenants divided by the size of area that they occupy
|
242 | -0.7% | 132 | 0.2% | 281.3 | -0.7% | 211.9 | -0.1% |
|
Occupancy (by area count) ⓘ
The proportion of units/areas within commerical properties that have a tenant with an active lease
|
78.3% | 0.1% | 78.4% | 0.3% | 74.6% | -1.2% | 75.9% | -0.3% |
|
Occupancy (by area size) ⓘ
The proportion of lettable area within commerical properties that have a tenant with an active lease
|
77.6% | 0.2% | 74.7% | 0.3% | 58.9% | -1.9% | 58.7% | 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
|
47.2 | 2.4% | 29.2 | -5.8% | 29.0 | -10.5% | 34.2 | -0.6% |
|
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.
|
8.3 | 2.1% | 8.4 | -0.5% | 8.1 | -8.1% | 8.2 | -2.7% |
|
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.
|
8.9 | -3.8% | ||||||
|
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"
|
5.6% | 0.2% | 6.6% | -0.4% | 10.6% | -0.1% | 9.1% | 0.0% |
|
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"
|
2.3% | -0.3% | 3.9% | -0.2% | 2.8% | -0.2% | 3.0% | -0.2% |
|
Overdue Rent (as % of rent roll) ⓘ
The volume of rent arrears compared to total annual rent
|
3.2% | -0.1% | 3.6% | 0.2% | 4.1% | 0.3% | 3.3% | 0.1% |
|
Overdue Rent (1-30 days overdue) ⓘ
The volume of rent arrears between 1 and 30 days old compared to total annual rent
|
0.4% | 0.2% | 0.5% | 0.4% | 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
|
0.4% | -0.3% | 0.6% | -1.1% | 0.3% | -0.2% | 0.4% | -0.3% |
|
Overdue Rent (90+ days overdue) ⓘ
The volume of rent arrears more than 91 days old compared to total annual rent
|
2.4% | 0.0% | 2.4% | 0.8% | 3.3% | 0.1% | 2.5% | 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
|
0.7% | 0.0% | 0.6% | 0.0% | 1.2% | 0.0% | 0.8% | 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.
|
89.0% | -1.3% | 83.0% | -0.5% | 90.8% | -0.4% | 88.6% | -1.0% |
|
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.
|
1.4% | 0.0% | 0.1% | -0.1% | 0.3% | -0.2% | 0.7% | 0.1% |
|
Lease Continuation ⓘ
|
39.8% | -3.8% | 51.7% | 2.4% | 24.0% | -17.0% | 32.2% | -8.3% |
|
Void Length ⓘ
|
376.2 | 0.0% | 454.2 | 0.0% | 360.6 | 0.0% | 400.0 | 0.0% |
Monthly Index | April 2021
| 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
|
39.4 | 0.0% | 36.5 | -0.8% | 33.6 | 1.2% | 36.8 | 0.0% |
|
Occupancy (by area count) ⓘ
The proportion of units/areas within commerical properties that have a tenant with an active lease
|
78.5% | 0.1% | 82.8% | 0.6% | 69.1% | -0.3% | 73.6% | 0.3% |
|
Occupancy (by area size) ⓘ
The proportion of lettable area within commerical properties that have a tenant with an active lease
|
64.0% | 0.9% | 61.5% | 1.6% | 66.8% | -0.4% | 73.6% | 0.5% |
|
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
|
41.2 | -0.5% | 29.8 | -3.2% | 27.8 | 1.5% | 29.2 | 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.
|
6.3 | -10.3% | 6.8 | -12.1% | 7.3 | -11.0% | 6.6 | -11.7% |
|
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.
|
9.0 | 2.5% | ||||||
|
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"
|
11.2% | 0.5% | 26.4% | -0.1% | 16.8% | 0.2% | 19.8% | 0.2% |
|
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"
|
6.3% | 0.2% | 8.0% | -0.2% | 6.0% | 0.1% | 6.7% | 0.1% |
|
Overdue Rent (as % of rent roll) ⓘ
The volume of rent arrears compared to total annual rent
|
6.7% | -0.3% | 4.0% | -0.1% | 4.1% | -0.4% | 4.6% | -0.2% |
|
Overdue Rent (1-30 days overdue) ⓘ
The volume of rent arrears between 1 and 30 days old compared to total annual rent
|
0.7% | -0.6% | 0.7% | -0.5% | 0.4% | -0.4% | 0.6% | -0.4% |
|
Overdue Rent (31-90 days overdue) ⓘ
The volume of rent arrears 31 and 90 days old compared to total annual rent
|
1.6% | 0.3% | 1.2% | -0.2% | 0.8% | 0.1% | 1.1% | 0.1% |
|
Overdue Rent (90+ days overdue) ⓘ
The volume of rent arrears more than 91 days old compared to total annual rent
|
4.4% | 0.0% | 2.1% | 0.6% | 2.9% | 0.0% | 2.9% | 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
|
1.4% | -0.1% | 0.5% | 0.1% | 1.3% | 0.0% | 1.0% | 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.
|
77.5% | -3.5% | 77.2% | -4.1% | 81.7% | -2.2% | 77.1% | -4.9% |
|
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.
|
1.3% | 0.2% | 0.8% | 0.1% | 0.6% | 0.1% | 0.9% | 0.1% |
| 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 |
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.
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.
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|
Index Data Point |
Definition |
|
WALT |
Measures the average lease length for a portfolio, granting a bias for tenants’ with a greater rent roll. |
|
Vacancy rates |
Measures the volume of vacant units. |
|
Average days to pay rent |
Represents the median number of days tenants paid their rent in full, after the rent due date. |
|
Debtors as a percentage of rent roll |
The value of current outstanding rent arrears as a percentage of the total annual rent roll. |
|
Average lease lengths |
The median length of leases, represented in Years and Months |
|
Premature lease terminations |
Measures the proportion of tenant’s that ended their lease before the original expiration date compared to the total volume of leases that expired in the reporting month. |
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CREDIA Magic Number |
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. |
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Average % rent commission/management fee |
The median % management fee that managing agents charge as a commission of rent collected. |
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Arrears growth |
The % increase or decrease of total rent arrears measured against the prior month. |
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Lease break execution |
Measures the proportion of lease break options that were executed against the total number of lease break options that were available to tenants. |
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Lease length duration variances |
The % increase or decrease of lease lengths measured against the prior month |
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Average time to first rent review |
A measure of the median length of time from the lease start date to first rent review date. Does not include fixed uplifts/stepped rents. |
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Average time to first lease break option |
A measure of the median length of time from the lease start date to the first lease break option date. |
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% of rent credited during a period |
Measures the proportion of rent that has been credited against the total rent due in the month. |
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Average rent per m2 |
Average annual net rent per m2 charged for all tenancies. |
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Rental growth |
The % increase or decrease of total rent per m2 measured against the prior month. |
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Potential tenant vacancy risk |
Measures the proportion of all tenancies who are on a rolling lease or are “holding over”. This presents a risk of future vacancy or voids as the tenant is not under contract. |
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Average Rent Review Increase |
Measures the median % increase in rent from all executed rent reviews. |
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Average days to pay creditors |
The average number of days that expense/supplier invoices are paid after the due date. |
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Bad debt early indicator |
Measures the proportion of current arrears that are owed by tenants that no longer have a current lease and have since vacated the property. |
