Mailbox REIT, the owner of Birmingham’s iconic Mailbox, has recently shared positive trading results and impressive rent collection figures for its mixed-use office/retail property. This is particularly noteworthy considering the challenges posed by the ongoing pandemic.
In its first year as a public company, Mailbox REIT has demonstrated resilience and success, attracting esteemed tenants such as Harvey Nichols, Calvin Klein, and Paul Smith. These premium retailers have contributed significantly to Mailbox’s prosperous performance.
Despite its achievements in the retail sector, Mailbox REIT has made the strategic decision to reduce its retail commitments. The company plans to convert 50,000 square feet of retail space into higher value office accommodation, which is scheduled to be unveiled in the second quarter of 2022. This move reflects the changing dynamics in the commercial real estate market and taps into the increasing demand for office spaces in Birmingham.
As of January 17, Mailbox REIT has impressively collected 93.9% of contractual rents for the quarter. The company has achieved a full collection for its office spaces, highlighting their stability and consistent demand. Retail rent collection stands at an impressive 83.9%, which considering the challenging circumstances faced by the retail industry, is an encouraging figure.
The company’s commitment to its Mailbox asset remains unwavering, with a current occupancy rate of 95.2%. This high occupancy rate signifies the appeal and desirability of the Mailbox property. Additionally, the average lease term of 13.5 years showcases the trust and long-term commitment from its tenants.
Mailbox REIT’s decision to convert retail space into office accommodation aligns with the changing preferences of tenants and businesses. The shift towards office spaces reflects the evolving work landscape, as more companies and professionals seek flexible, comfortable, and modern working environments.
In conclusion, Mailbox REIT has enjoyed a successful first year as a public company, with strong trading results and impressive rent collection figures. Its decision to adapt to market demands by converting retail space into office accommodation further solidifies its position as a forward-thinking and agile property owner.
Useful links:
1. Birmingham Mail – Mailbox Owner Reports Strong Trading
2. Mailbox – Official Website
