Nationally, commercial tenants’ overall rental payment behaviour shifted only marginally during Q2 compared with the first quarter of 2013.  The Good Standing position dropped from 84% to 83% but this is merely as a result of decimal rounding: Tenants in the Paid on Time category remained at 56%, Grace Period remained the same at 9% and the Paid Late bracket was unchanged at 18%. It is also encouraging to note the Did not Pay category dropped to 6%.

Although the percentage of tenants in Good Standing has slowly improved since the end of 2010, there is a worrying trend of tenants migrating from the Paid on Time category and into the Grace Period and Paid Late categories, currently standing at a combined 27%. To put this tendency into perspective, late-paying tenants in Q4 2010 bottomed out at 13% and stayed in the range of 19% to 22% until Q1 and Q2 of 2013, where the figure remains at 27%. This will bring increasing cash flow pressure to bear on landlords in meeting monthly operational costs.

Click below link to view The Rental Monitor:
TPN_Comm_Monitor_Q2_2013.pdf - 0.3 Mb

Click below link to view Rental Monitor for tenants:
TPN_Rental_Monitor_Q2_2013 (Rental - tenants).pdf - 0.6 Mb

Click below link to view Rental Barometer for investment:
TPN_Rental_Barometer_Q2_2013 (Investment).pdf - 1 Mb

Click below to view Economic Newsletter for September 2013:
Sept 2013.pdf - 1.4 Mb

Click below link to view KZN Fuel Demand:
KZN Fuel Demand.xlsx - 0.3 Mb

Dr Clive Coetzee

General Manager:  Infrastructure Management and Economic Services

KZN Provincial Treasury

Economist (PhD UKZN)

033 897 4538

http://www.kzntreasury.gov.za/