Demand rising across commercial property market, says CBRE
Despite the fact that many retailers continue to struggle with rents and rates, CBRE reports the retail commercial property market has witnessed an improvement during the first two months of the year
Print1 March 2013
All sectors of the Irish commercial property market have experienced strong demand during the first two months of 2013 with increased volumes of transactional activity occurring across the country, according to a recent report.
The first bi-monthly report of 2013 by property consultants CBRE states that although conditions in the retail sector remain difficult and many retailers continue to struggle with rent and rates obligations, there is an evident improvement in activity.
Well-located properties that are being brought to market at present have several bidders, according to CBRE.
However, the report adds that the effect of polarisation is very evident in the retail sector with a scarcity of suitable stores in some locations to suit occupier’s specific requirements and significant oversupply in other locations around the country where demand is considerably thinner.
Much of the industrial leasing activity being completed at present is reported to comprise relatively small lot sizes although there are a number of larger requirements outstanding and there is an emerging scarcity of quality modern logistics stock larger than 4,645m2 along certain corridors.
Despite the high profile negative news of late surrounding retailers such as HMV, Pamela Scott and B&Q, the property consultant reports a number of transactions have been completed or are currently in active negotiations.
NAMA has announced that it is to fund the amalgamation of two adjoining retail units on 57/58 Grafton Street creating 743m2 of accommodation for which there is likely to be considerable demand from both new and existing retailers.
Indeed, CBRE’s latest report states there has been strong demand from retailers for the vacant stores at 117 and 118 Grafton Street, which are currently on the market, guiding €3.8 million.
Following the recent resolution of the Dunnes Stores’ litigation at the Point Village in Dublin Docklands, there is now new momentum from a range of restaurant users encouraged by increasing success of the Odeon cinema which opened last year.
In terms of FMCG and grocery retailers, Eurogiant is to open a new store at Parnell Street in Dublin 1. Tesco is also set to open a new store at Maypark on Dublin’s Malahide Road while Aldi is to launch a new store in Mulhuddart in Dublin 15.
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