Retail occupancy rates in Dublin are rising
Vacancy rates on Dublin's main shopping streets have dropped since this time last year, according to a report by real estate group CB Richard Ellis
Print20 June 2011
A new report released by CB Richard Ellis shows that occupancy rates have increased significantly on Dublin’s prime retailing streets compared with this time last year.
According to Real Estate group CB Richard Ellis, ground floor units on Grafton Street are showing approximately 1.1% vacancy compared to 3.2% this time last year while the vacancy rate on Henry/Mary Street is 0.3% compared to 5.8% this time in 2010 demonstrating that there is strong demand from retailers to let units in prime locations, albeit on shorter leases and reduced rents.
Having already experienced declines of more than 50% from peak levels in 2007, rents in the Irish retail sector remain under pressure.
Despite retail sales on Dublin’s high streets falling over the last three years, the average footfall on the capital’s shopping streets has remained relatively consistent over the period. However, compared to this time last year, footfall on both Henry Street and Grafton Street are down 10% and 4% respectively.
Commenting at the launch of the Dublin Retail Marketview report, 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 pursue expansion plans but frustrated to some extent by the length of time it is taking to conclude transactions at present.”
According to the report both Irish and international retailers have announced entry and expansion plans, taking advantage of their ability to secure attractive terms and conditions from landlords in the current climate.
“There is still huge uncertainty about government proposals to review rent review mechanisms in all business leases. In many cases, landlords are giving generous concessions to tenants who demonstrate genuine difficulties in meeting rental payments,” said Harrington.
The research shows that the total stock of shopping centres in Ireland is forecast to reach 2.06 million square metres by the end of 2011 while the total stock of shopping centre accommodation in Dublin by year end will be approximately 570,000 square metres.
In comparison, there is now 1.32 million square metres of retail park development in Ireland with just over a quarter of this accommodation located in Dublin. There were no retail parks completed in Dublin in the last two years.
26% of international retailers now have a presence in the Irish market, up from 25% last year, making Ireland the 32nd most international retail market in the world. In comparison, Dublin ranks 65th out of 150 cities in terms of the number of international retailers that have a presence in the capital.
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