The property industry has made real progress in becoming more flexible over 2009, but a report from the BRC shows there is more to do.

Yesterday’s piece of research from the BRC that only 12% of retail leases are on monthly terms shows that there’s a long way still to go before quarterly in advance rent payment is consigned to the dustbin where it belongs. To be fair the sample size was very small but the results feel representative.

That doesn’t come as a big surprise to me. Landlords are still unwilling to give up on the system on existing leases, fearful of the cashflow and administrative issues surrounding switching to monthly payment. That’s a shame though, as there shouldn’t really be any significant financial loss from changing but the benefit to their retail tenants, in a world where cashflow is king, would be significant.

And landlords have shown their flexible side in 2009. Their willingness to support sensible CVAs hasn’t been popular with all retailers, but has shown they are willing to take a hit to see tenants they consider have a future stay in business.

There remains more to do though, and the recent success of the anti upward only rent review campaigners in Ireland shows that legislation is always a threat if an industry doesn’t act on practices which to anyone in the outside world would seem archaic.

However, as it’s Christmas, it’s not a bad time to celebrate the good work that has gone on between landlords and tenants this year. With the trading outlook for next year looking mixed, more sensible conversations are likely to be needed in 2010.

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