News

Irish retail weathers the storm

News

James Kenny

31 May 2011

Retail

Despite Ireland still being in the throes of an economic crisis, the retail sector, particularly in Dublin, is managing to hold up relatively well, according to CB Richard Ellis Ireland.

The most recent data from Ireland’s Central Statistics Office shows that retail sales in Ireland have declined for 39 consecutive months. However, CBRE said many retailers continue to announce new entry and expansion plans, taking advantage of the ability to secure attractive terms and conditions from landlords in the current economic climate.

Although retailers on Dublin’s high streets have experienced very difficult trading conditions since the onset of the economic downturn and there have been several high-profile closures, CBRE’s research indicates that aggregate ground-floor vacancy on the prime high streets in the capital is approximately 0.6% in Q2 2011, compared with 5.0% this time last year.

The vacancy rate of ground-floor units on Grafton Street is approximately 1.1%, according to CB Richard Ellis, compared with 3.2% this time last year. And the vacancy rate on Henry/Mary Street is 0.3%, compared with 5.8% this time in 2010. This suggests that there is strong demand from retailers to let units being vacated in prime locations, albeit on shorter leases and reduced rents.

Michael Harrington, director of the retail department at CB Richard Ellis in Ireland, said: “The retail sector in Ireland remains very challenging. While the underlying economic situation will continue to impact severely on discretionary spending for the foreseeable future, the outlook for prime shopping centres and the main high streets in Dublin is considerably better than many provincial and secondary schemes and locations. We are encouraged by the fact that there are many new entrants considering locating here and that many retailers are continuing to purse expansion plans but frustrated to some extent by the length of time it is taking to conclude transactions at present.”

james.a.kenny@estatesgazette.com

To access all EGi news stories and commercial property data sign up for a free trial today, or visit the subscription options page to find out more.

Despite Ireland still being in the throes of an economic crisis, the retail sector, particularly in Dublin, is managing to hold up relatively well, according to CB Richard Ellis Ireland. The most recent data from Ireland’s Central Statistics Office shows that retail sales in Ireland have declined for 39 consecutive months. However, CBRE said many retailers continue to announce new entry and expansion plans, taking advantage of the ability to secure attractive terms and conditions from landlords in the current economic climate. Although retailers on Dublin’s high streets have experienced very difficult trading conditions since the onset of the economic downturn and there have been several high-profile closures, CBRE’s research indicates that aggregate ground-floor vacancy on the prime high streets in the capital is approximately 0.6% in Q2 2011, compared with 5.0% this time last year. The vacancy rate of ground-floor units on Grafton Street is approximately 1.1%, according to CB Richard Ellis, compared with 3.2% this time last year. And the vacancy rate on Henry/Mary Street is 0.3%, compared with 5.8% this time in 2010. This suggests that there is strong demand from retailers to let units being vacated in prime locations, albeit on shorter leases and reduced rents. Michael Harrington, director of the retail department at CB Richard Ellis in Ireland, said: “The retail sector in Ireland remains very challenging. While the underlying economic situation will continue to impact severely on discretionary spending for the foreseeable future, the outlook for prime shopping centres and the main high streets in Dublin is considerably better than many provincial and secondary schemes and locations. We are encouraged by the fact that there are many new entrants considering locating here and that many retailers are continuing to purse expansion plans but frustrated to some extent by the length of time it is taking to conclude transactions at present.” james.a.kenny@estatesgazette.com To access all EGi news stories and commercial property data sign up for a free trial today, or visit the subscription options page to find out more.