Developers are preparing for Ireland’s rising population with retail schemes throughout the country.By Noella Pio Kivlehan
With just under one-third of Ireland’s 4.8m population living in and around Dublin, it is not surprising that most development is focused on the capital.
But there is still a lot of building elsewhere, with the majority concentrating on Ireland’s strongest commercial market, retail.
Cork, Ireland’s second-largest city, is seeing its first major retail scheme for more than 10 years. And further north, in County Mayo, two retail projects, one in and one out of town, are being developed in Sligo.
With Ireland’s population forecast to grow by 10% over the next 15 years, development in the rest of Ireland is predicted to expand. As a result, Marie Hunt, head of research at Insignia Richard Ellis Gunne, warns that schemes should be carefully thought out.
“It is important that retailers and developers consider the demographics and plan retail developments in locations which can ultimately sustain new schemes. The structure of the population is changing rapidly, and retailers who plan new retail offerings with these changes in mind will profit accordingly,” says Hunt.
Commentators are, however, not worried about the effect of the developments in Cork and Sligo. Both centres are in desperate need of retail schemes.
Cork
Constrained north and south by the River Lee, the city has always had a problem expanding its city-centre retail pitch.
The combination of this natural restriction with tough planning laws has resulted in a lack of significant retail development.
City-centre rents are soaring, says John Downing, a director with Cork-based agent Cohalan Dowling.
In the city’s main retail area – Patrick Street – zone A rents have doubled over the past three years and are now €400 per m2.
“It’s not a case that these rents have been driving retailers out, but more that the growth of the market means they are looking to come in,” says Dowling.
International retailers are seeking space in order to reach the catchment of 400,000 people that make up greater Cork.
The majority of this demand is set to be satisfied with Cork-based developer O’Callaghan Properties’ development Mahon Point shopping centre, just four miles from the city centre. The centre is part of the 120-acre, mixed commercial development, the Mahon Point Scheme.
Letting agent, Peter O’Meara, associate director of CB Hamilton Osborne King, describes the project as one of “Ireland’s leading retail schemes”, and “a new destination for the city.”
At 30,000m2, the development is due to be completed by spring 2005. Debenhams is taking the 7,000m2 anchor store, with Tesco taking the 4,645m2 food store. The centre will also include an 11-screen multiplex.
Frank Ryan, senior partner at Colliers Jackson Stops in Cork, says the development will be good for the city.
Sligo
The north west town of Sligo, with a catchment of only 40,000, has one thingin common with its southern cousin – a lack of retail space and subsequentpent-up demand.
H Samuel and Adams have units in the town, and the town’s one shopping centre is anchored by Tesco.
But with two developments planned,Sligo – the burial place of WB Yeats – hopes to attract retailers such as Boots and Next.
According to Walter Murphy, directorof Sligo-based Murphy & Sons, Bootshave been looking for space in the townfor a while.
Treasury Holdings is set to redevelop the central shopping area of Wine Street. The company is in the process of submitting a planning application for a 28,000m2 project.
The other development is a 20,000m2 out-of-town retail warehouse park by developer Patrick Doherty.
The project, on the Dublin road just one mile from Sligo town centre, was in planning for three years before being granted permission last September.
Opposite the warehouse park, Ray and Eileen Monaghan submitted a planning application in September for retail units totalling 8,448m2.
