2013 shaping up to be best year since 2007 for Irish commercial property
Transactional activity in all sectors of the commercial property market is up significantly year-on-year, according to the latest report by CBRE
4 November 2013
Commercial property consultants CBRE today released their last bi-monthly report for 2013, focussing on trends in all sectors of the Irish commercial property market. The property consultants say that 2013 is on track to be the best year in the Irish commercial property market since the peak in 2007 with transactional activity in all sectors up significantly year-on-year.
According to Enda Luddy, managing director at CBRE Ireland: "2013 has been a very strong year for the Irish commercial property market with recovery now evident in each sector of the market and a marked improvement in transaction volumes across all sectors. At this stage in the year the focus would normally be on getting transactions closed by year-end but such is the weight of demand for prime real estate at present, we are continuing to see new properties and portfolios being released for sale even at this late stage in the year".
In its look at the retail sector specifically, CBRE said many retailers are now gearing up for what promises to a busy Christmas trading period.
In the retail property market, activity is primarily focused on the better performing shopping centres and high streets with Dublin witnessing a greater volume of transactional activity than other locations. Many of the units previously vacated by other retailers are being re-let to new occupiers. In one of the largest retail lettings signed in the capital this year, TK Maxx have agreed to lease 3,118m2 at the ILAC Centre in Dublin 1.
However the report also found retail landlords are concerned about the imminent adoption of fast-track legislation which will enable small businesses to pursue an examinership process though the Circuit Court.
In the Northern Ireland property market, the second half of 2013 has been considerably busier than the first half, with an increase in the volume of properties being released for sale over recent months. A number of significant investment properties have sold recently including a Tesco Extra store in Newry, which sold for £30.3 million, reflecting a net initial yield of 4.95%. Most of the demand for institutional grade investment properties of this nature is emanating from UK investors who are increasingly looking for opportunities in regional markets such as Belfast.
With the annual Christmas market at City Hall and an ice-rink planned for Custom House Square, it is hoped that political tensions can be kept at bay and that flag protests planned over the coming weeks won’t deter from what promises to be a busy Christmas trading period across the region.