|
That is actually down 7% from September, but nationally the
numbers tell a different story.
According to Alignable’s October Rent Report, the U.S. rent
delinquency among small businesses jumped 7%, marking the
largest, most rapid increase this year.
Nearly 40% of small businesses in the U.S. failed to pay their
rent in full in October, with more than half saying their rent
has been hiked at least 10% over the past six months.
In
addition to rising rent prices, reduced consumer spending and
higher supply costs are taking a toll.
“It is very nerve racking given that we are in the 4th quarter
and so many businesses rely on Q4 to basically bail them out
from the rest of a rough year,” said Alignable head researcher
Chuck Casto.
In September, the study found rent delinquency had been at a
six-month low, fueled by optimism for the final quarter of the
year's earning potential as some small business owners reported
an increase in sales.
Illinois was one of only two states where rent delinquencies
decreased from September. The Northeast appears to be
experiencing the most troubles paying rent with Massachusetts,
New Jersey and New York reporting the highest percentages.
Leading the pack were businesses in the education sector, up 13%
from last month to a whopping 57%, the highest ever seen in that
subset of businesses.
Not far behind were two more types of businesses that also saw
record delinquency in the month of October, the automotive
sector and restaurants.
Many restaurants are far from being fully recovered from the
pandemic. The survey showed nearly half of all restaurants
couldn’t pay their rent in full and on time in October, an
increase of 13% from September.
Kevin Bessler reports on statewide issues in
Illinois for the Center Square. He has over 30 years of
experience in radio news reporting throughout the Midwest.
|
|
