Retail rents increase across Leinster, Connacht and Ulster
New report shows retail rents have risen in some provinces but continue to fall in Munster
Print28 March 2014
A new report shows rents in the prime retail sector have increased in Leinster over the past year and are now at €325 per sq m, an increase of 7.3%.
Rents also increased across most retail categories in Connacht and Ulster, according to the latest Commercial Property Review and Outlook 2014 published by the Society of Chartered Surveyors Ireland (SCSI).
Tough trading conditions
However they continued to fall in Munster, reflecting tough trading conditions in Cork, Limerick and Waterford.
A survey of 400 chartered surveyors formed the key part of the SCSI report, which was published in conjunction with Amárach Research.
The research also revealed rents for prime rental units in Dublin’s retail sector continued to fall in 2013 and are now just above €4,000 per sq m.
However 75% of surveyors said they do not expect an increase in the supply of prime retail in the capital city and the organisation believes this should see rents stabilise.
Stabilisation in ‘better locations’
Eamonn Maguire, chair of the SCSI Commercial Agency Professional Group said: "The retail space sector was badly hit over the past number of years, largely reflecting the economic challenges faced by the country. It is too early to predict a recovery in this sector and there are regional retail schemes around the country which are struggling but we are seeing a stabilisation in rents in the better locations."
The SCSI report suggested that rents for prime industrial rents in Dublin have also begun to stabilise at €61 per sq m. largely driven by demand from online distribution and data centres and the food sectors.
Overall, the report showed there was a turnaround in the commercial market in 2013 and that this has continued in the first quarter of 2014.
There was a 23% increase in take-up in the office market in 2013 and SCSI described the sector as the star performer over the past 12 -14 months. However the research also suggested that a two tier commercial office market is emerging and that offices outside of the major cities and in regional areas continue to struggle.
Calling for Commercial Transaction Database
The SCSI said the introduction of the Commercial Lease Register represented a significant improvement in transparency in the sector around leases. "This was a welcome development and we are calling for a Commercial Transaction Database, like the Residential Property Price Register to be introduced as soon as possible. It’s the next logical step and will bring an added level of transparency to the sector," added Maguire.
The full report is available at www.scsi.ie or on request.
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