Report: Business rent delinquency rate hits nearly 40%

Nearly 4 of 10 independent business owners struggled to pay rent in full and on time in April, according to a new report, with Florida high on the delinquent list.

The report, from online referral network Alignable, found that 39% of small business owners nationwide were behind in rent in April. That’s the highest rate in 2023, up 1 percentage point from March and 9 from January. 

The Alignable report, released April 27, is from a poll of 4,205 randomly selected businesses taken April 1-26. Industries with the highest delinquency rates include transportation, manufacturing, restaurants and retail — all of which were above the 39% mark. Gyms, lodging/travel businesses and real estate entities had some of the lowest delinquency rates. 

Businesses in Texas, Connecticut and New Jersey had the highest rates of rent issues, the report found, while Florida was on the list of “other states that saw significant jumps in April rent delinquency rates.”

Reasons for the rise in delinquencies, the report found, weren’t as straightforward as rent increases. Responses to the poll included reduced revenue, supply prices, cumulative effects of higher-than-unusual inflation, increasing interest rates, rising gas prices and a more difficult time accessing financing after several high-profile bank failures. 

Other survey highlights include: 

• More than half of the respondents, 53%, say their rent is now higher than it was six months ago — up from 47% in January. 
• Nearly half, 49%, of independent restaurant owners couldn’t pay April rent, up 15 percentage points from March.
• More than 4 of 10, 41%, of small manufacturers couldn’t make April rent, the highest delinquency rate the industry has had in over a year.