The Retail Market - CBRE
The Retail Market
May 2008
According to the latest report on the retail market from CBRE, the retail market has understandably been a casualty of the slowdown in economic conditions in recent months, a trend that has been borne out by recent footfall counts and statistics released by CREST Retail Excellence Ireland and the Central Statistics Office, which both point towards a decline in consumer spending in some sectors during the first quarter of 2008.
From a property perspective, activity remains reasonably strong however, with a large number of transactions continuing to be negotiated around the country and strong demand continuing to emanate from both domestic and international retailers. Interestingly, Tesco, Dunnes Stores, Super Valu and Centra have all announced further expansion plans in the last two months. The most significant shopping centre to commence trading recently is the impressive Victoria Square development in Belfast.
In Dublin, the news that Dunnes Stores will occupy an 11,148m2 store in the proposed Point Village scheme in Dublin Docklands has been very well received, not least from the thousands of people living and working in this part of the city. The most significant development from a retail perspective in the capital in recent weeks is undoubtedly the lodging of planning for the ambitious ‘Dublin Central’ scheme on O’Connell Street. This coupled with Arnott’s impressive ‘Northern Quarter’ development will regenerate the north city over the coming decade and create a vibrant retail environment, which is to be broadly welcomed. In the short term, there is no doubt that conditions in the retail sector will remain competitive for the foreseeable future with consumers reining in spending until such time as economic conditions improve. The inevitable knock-on impact is that developers will now have to re-consider phasing plans and start dates and some schemes may ultimately be put on hold.
Prime Retail Zone A Rents
(Based on Transactional Evidence)
- Grafton Street € 10000 per m2
- Henry Street € 7500 per m2
- Liffey Valley € 3900 per m2
- Dundrum € 3500 per m2
- Blanchardstown € 3500 per m2
- St. Stephens Green € 2800 per m2
- Athlone Town Centre € 2000 per m2
- The Square € 2100 per m2
- Secondary City Centre € 1100 per m2
- Retail Warehousing Rents
- Blanchardstown € 360 per m2
- Airside Retail Park € 340 per m2
- Liffey Valley € 320 per m2