Modest improvement in retail property market
Recent months have shown a modest improvement in underlying consumer spending trends, and the Irish commercial property market is likewise improving
13 July 2010
The Dublin office of CB Richard Ellis Group (CBRE) launched their latest bi-monthly assessment of conditions in the Irish commercial property market. The July 2010 report confirms that many sectors of the Irish commercial property market are now showing signs of improvement. According to the report, there has been an encouraging improvement in activity in the Dublin office market in recent months.
With regard to the retail sector, the property consultants say that there has been a modest improvement in underlying consumer spending trends in recent months, fuelled by the emergence of more positive economic forecasts and the recent spate of good weather. With the summer sales season in full swing, CB Richard Ellis say that retailers are more upbeat than they were only six months ago but caution that the next six months will continue to be challenging and getting transactions across the line is likely to remain difficult. Prime rental values in the retail sector continue to come under downward pressure.
Prime rents in Dublin city centre are holding steady at approximately €376 per square metre or €35 per square foot although the agents say that downward pressures remain for secondary accommodation, particularly around the M50 where there is a large concentration of vacant accommodation. Despite a significant decline in the number of new schemes coming on stream, CB Richard Ellis say that the existing overhang of office space will be slow to erode until more net absorption is achieved.