Angel Nails are now open at Manor Mills Shopping Centre, located at Kiosk 4 (bottom of travelator)
Urban Eyes are opening in Pavilions shopping centre, Swords!
New Local Independent Sunglasses Store looking to bring the classic and new brands to Ireland.
Hollister is set to become the latest retailer to join the line-up at the Blanchardstown Centre.
The American clothing brand has agreed a 10-year lease for a 582 sq.m (6,265 sq.ft) unit at the hugely-successful Dublin scheme.
Hollister will join JD Sports who signed up last year for a 1,100 sq.m (11,800 sq.ft) store within a 55,000 sq.ft extension that is under construction. Distributed across two levels adjoining Blanchardstown’s central mall, the development will comprise eight new retail units upon completion next year.
Commenting on Hollister’s decision to locate at Blanchardstown, Pat Nash, managing director of Multi Ireland & UK, said: “This signing underlines the growth of our offering and our ability to provide the broadest retailing choice in both our retail parks and our covered malls.”
Separately, Fingal County Council has granted planning permission for the development of an additional 3,200 sq.m (35,000 sq.ft) extension at Blanchardstown’s Blue Mall entrance.
Existing eateries
This space is being earmarked for the provision of a number of new restaurants ranging in size from 142 sq.m to 861 sq.m (1,528 sq.ft to 9,267 sq.ft). The extension will be located within close proximity to the Odeon cineplex and several of Blanchardstown’s existing eateries including Nando’s Milano and Eddie Rockets.
Developed originally by Stephen Vernon’s Green Property in 1996, the Blanchardstown Centre is acknowledged as one of Ireland’s foremost and most successful retail and leisure operations with more than 16.5 million visitors annually. The scheme includes more than 180 stores and is anchored by Dunnes Stores, Marks & Spencer, Penneys and Debenhams.
Bannon are delighted to be part of the Blue Mall extension with strong interest from both National & International F&B operators.
Carraig Donn are delighted to open their brand new store in The Square Tallaght today from 11am, where they are offering 20% off full price stock, goodie bags for the first 50 customers plus more exclusive opening offers!
Dublin’s largest menswear fashion Diffney is now open on Level 1 in The Square Tallaght.
McGarrell Reilly’s plans for a new €75m Lusk Village Quarter in Lusk, Co Dublin, have been amended to include eight units with a combined 1,000 sq m for use as retail, restaurant and café outlets. Its plans also include a 2,500 sq.m supermarket that will be let to the discount operator Lidl, which will be the quarter’s retail anchor.
Lidl expects to be operating on site by December 2020, subject to the granting of amendments to the permission.
The amendments will also allow for two or three other retail units comprising 300 sq.m as well as parking spaces for 128 cars.
Sean Reilly is executive chairman of the development company and James Quinlan of Bannon is handling the commercial lettings.
Demand for these shopping facilities is reflected in a retail impact assessment conducted on behalf of McGarrell Reilly which shows over 85% of Lusk residents leave the area to do shopping.
Amenities will also include a crèche, a public square with a newly commissioned art piece, a village green and a playground. Spanning 15 acres, the project will accommodate over 150 new family homes. Its first phase will provide 56 homes at Station Road, which are now on sale, including 18 social and affordable homes. McGarrell Reilly has spent over €100m to date in Lusk and delivered over 700 homes to the area since the late 1990s.
Companies priced out of Dublin’s core central business district and the prime postal code areas of Dublin 2 and Dublin 4 will be interested in the opportunity to locate at 6 Northbrook Road.
Situated within a five-minute walk of Leeson Street and Ranelagh Road, this Victorian property has been thoroughly refurbished to provide more than 9,400 sq.ft of office accommodation over four floors at a competitive €45 per square foot.
Quite apart from the immediate cost benefit available to the prospective occupier, 6 Northbrook Road offers the benefit of modern open-plan and cellular office accommodation complemented by numerous of the building’s original Victorian features, including stained-glass windows and an impressive central staircase.
In terms of its facilities, the property’s specification includes: Cat 5E cabling, generous floor-to-ceiling heights throughout, recessed spot and ornate feature lighting, gas-fired central heating, floor boxes and part perimeter trunking, tea stations, solid timber flooring in part, shower rooms, an eight-person passenger lift and ladies’ and gents’ toilet facilities on all levels.
Externally, the building features a landscaped set-down area, a communal summer garden to the rear, 11 car-parking spaces and bike storage.
The property is well connected in terms of public transport. Charlemont Luas stop is just 450m away while the quality bus corridor on nearby Leeson Street Upper is served by 10 Dublin Bus routes. The surrounding area offers numerous amenities including restaurants, cafes and bars such as the Sussex, Canal Bank Cafe, Dillingers, the Butcher Grill, Bunsen, and Cinnamon.
Rebecca Jones, who is handling the letting on behalf of Bannon, says she expects to see “significant interest” from occupiers looking for a location for their headquarters within close proximity to Dublin’s central business district.
Contact our Office Department today for more information on 01 6477900
Hammerson and Irish Life, joint owners of the Swords Pavilions Shopping Centre, have announced that luxury bath, body and home brand, Rituals Cosmetics will be opening its fourth stand-alone store in Ireland at Swords Pavilions, in the heart of North Dublin. Located close to the newly opened Superdry and JD Sports stores the 800 sq ft boutique will open on Wednesday 4th September 2019, enhancing the centre’s premium offer.
Founded in 2000 by Raymond Cloosterman, Rituals Cosmetics is the first brand in the world to combine home and body cosmetics, with an expansive product line including body care, scented candles, fragrance sticks, assorted teas, natural skin care and soulwear.
This latest announcement follows the opening of Swords Pavilions’ new dining quarter earlier this year with American burger chain Five Guys and well-loved pizza brand, Milano having already opened restaurants in the scheme. In July modern Persian kitchen Zaytoon also launched its new format restaurant at the centre.
This will be Rituals’ second stand-alone store opening in Ireland with Hammerson, having signed for a boutique in Dundrum Town Centre which launched in September 2018. The brand also has an outlet store in designer shopping destination, Kildare Village, owned by Hammerson through their partnership with Value Retail.
Simon Betty, Hammerson Director of Retail Ireland, said: “Rituals is a great addition to the brand offer at Swords Pavilions, demonstrating the continued demand from premium brands for high quality retail space in strong consumer catchments such as Swords Pavilions. Lettings such as this are a prime example of our strategy to ensure the centre remains the main retail and leisure destination in North Dublin.”
Rituals UK & Ireland Managing Director, Penny Grivea, said: “We are so excited to be opening another stand-alone store in Dublin at Swords Pavilions, allowing us to introduce the Rituals experience to as many customers as possible. Whether it is enjoying a hand massage at the water island or simply a cup of herbal tea upon arrival, the team can’t wait to help the Pavilions customers slow down and transform daily routines into meaningful rituals. This opening marks an exciting time for the brand, building upon our existing retail presence in Ireland.”
DANISH HOME RETAIL brand JYSK is planning to open 40 Irish stores within the next five years, effectively more than doubling its previous expansion plan for the country.
The 40-year-old Scandi retailer opened its first Irish store in Naas, Co Kildare in April and has since opened in three more locations. Earlier this year, JYSK – which is pronounced “yusk” – said it was planning 15 stores across the Republic.
The company has since revised these plans and said it now aims to open in 40 locations here over the next three to five years, which it says will help its Irish operation generate annual sales of up to €70 million.
To help source potential locations, JYSK – which sells a range of home furnishings and mattresses – is planning to meet with potential landlords at a showcase in Dublin in mid-September after encountering difficulties with its growth plan here.
Poul Erik Larsen, JYSK’s expansion director, said it has been more time-consuming and expensive to open new stores in Ireland compared to other European locations.
“We have noted that in other parts of Europe, we can issue and sign a lease contract within two to four weeks, whereas in Ireland, this is taking up to 16 weeks in some cases,” Larsen said.
“To achieve the volume of stores we want in the Irish market within two to three years, we need to secure a steady flow of new locations and that is something we’re actively pursuing right now.”
Scandinavian furniture and homeware chain JYSK opened their second Irish store this morning at Drogheda Retail Park as people queued up to get into the new JYSK store which was officially opened at 9.00 am.
Founded in Denmark in 1979, JYSK , (it’s pronounced “Yusk”), is a global retail chain with more than 2,700 stores worldwide selling everything for the home, it has a turnover of €3.6 billion a year and employs some 23,000 people.
The Drogheda JYSK store is the group’s second in Ireland, it opened its first branch in Naas in April and stores are also scheduled to open in Navan later this month and Portlaoise in August.
Intersport Elverys who proudly invested in Tipperary GAA, are delighted to announce they have officially opened their new store in Thurles Shopping Centre with the widest range of GAA, running and training gear for kids and adults.
Intersport Elverys, in partnership with Tipperary GAA invited fans young and old to meet the Inter County players and browse the new store. There was exclusive interviews, fun activities and exclusive discounts on the day.
They were joined by Tipperary players Seamie Callanan, Noel McGrath and Ronan Maher on the day who took pictures and signed autographs with fans.
Boots has become the latest major retailer to sign up at the landmark Gateway Retail Park in Galway.
The pharmacy-led health and beauty retailer has agreed to take a new 700 sq.m (7,500 sq.ft) premises at the scheme.
Boots are understood to be paying a rent in excess of €35 per sq.ft per annum for its new store which is under construction as part of the second phase of the retail park. Boots will be located immediately adjacent to the new branch of Harvey Norman.
Due for delivery in the first quarter of 2020, the second phase at Gateway will comprise an additional 11,148 sq.m (120,000 sq.ft) of retail space offering eight new retailers, three new food and beverage operators and a gym. Current tenants at the Gateway park include Dunnes Stores, Next, New Look, McSharry Pharmacy and B&Q.
Gateway’s asset manager, Paddy O’Connor of Sigma Retail Partners, believes Boots’ decision to locate at the scheme further underpins it as the destination of choice for retailers in Galway.
Darren Peavoy of Bannon who handled the letting on behalf of the landlord said the remaining units at the scheme are all under offer.
Costa Coffee will open a brand new store in Waterford Retail Park on the Outer Ring Road this summer. The new coffee pod will take up a floor area of approximately 2,600 sq. ft and will result in a bright and spacious high-spec coffee offering with outdoor seating. It joins other big-name retailers in the retail park including anchor tenant Harvey Norman, Homestore & More, Curry PC World, Halfords, Home Focus, EZ Living Interiors and Maxi Zoo.
Costa Coffee is a multinational coffee house company and is the second largest coffee house in the world. Costa Coffee is present in 31 countries across the globe and it opened its first store in Ireland in 2005. Its number of stores have been growing ever since and it has multiple stores all over Ireland.
The asset manager for Waterford Retail Park, Jenna Culligan from Sigma Retail Partners, said “We are delighted that Costa Coffee is joining our very strong tenant line-up in Waterford Retail Park. As part of our strategy for this park we identified that food and beverage was missing for the park and we sought to provide this for the retail park. As everyone knows Costa Coffee are one of the biggest coffee chains in the UK and Ireland and we are absolutely delighted to have them on board.”
Waterford Retail Park is easily accessed from Waterford City and is less than a 10 minutes’ drive away. The retail park is located along one of the main access routes to Waterford City from the M8 and N25 (Cork Road) and benefits from free customer parking. Waterford Retail Park is also located close to Waterford Greenway and the new Costa Coffee store will be a great pit-stop for visitors heading to and from the Greenway.
Bannon are the letting agents for Waterford Retail Park.
Bannon are delighted to have secured Petstop for the former Maplin unit in Limerick One Shopping Park.
At a rent of €24 per sq.ft for the 7,500 sq.ft unit, this letting further illustrates Limerick One’s regional importance as a premier retail trading destination.
Giant retailer Harvey Norman is to open a substantial new store now under construction as part of the second phase of the Gateway Retail Park in Knocknacarra, Galway.
Australia’s leading retailer, specialising in computers, technology, electrical goods, furniture and bedroom fittings, is to rent the 5,574 sq.m (60,000 sq.ft) flagship store in the thriving park, which was acquired in 2016 by Sigma Retail Partners on behalf of Oaktree Capital.
The new store will form part of a 11,612 sq.m (125,000 sq.ft) extension, bringing the overall retail space to more than 30,192 sq.m (325,000 sq.ft).
The planned extension will be the first large-scale retail space to be completed outside Dublin since 2008 and the first in Galway for more than two decades. When completed, the new retail facilities will provide more than 300 permanent and part-time jobs in Galway.
Harvey Norman plans to trade over two levels after agreeing an annual rent believed to be about €900,000.
Tenant mix
Gateway’s line-up of tenants also includes Dunnes Stores, B&Q, New Look and Next. According to letting agent Bannon, signing Harvey Norman as anchor tenant highlights the undoubted appeal of the centre and its mix of tenants. Bannon is also due to announce the identity of a second international trader, which has agreed rental terms on another store extending to 650 sq.m (7,000 sq.ft).
In addition to Harvey Norman, the second phase of the retail park will have up to six new open-use retail units and four food and beverage outlets,
Darren Peavoy of Bannon said the interest in the available shops was hardly surprising given the absence of new trading facilities in Galway and the fact that new outlets in Gateway Park could be used for fashion and other choices.
Blaine Callard, Harvey Norman’s Irish chief executive, said the Irish business had great momentum right now and the addition of the huge showcase store in Galway would be an exciting addition to the network.
“We see from our online business that there is a huge pent-up demand from Galway customers to shop physically in Harvey Norman . . . it has taken a few years but we have finally found a home in the west.”
Marcus Wren of Sigma said a huge amount of work had been put into planning the new extension to the retail park. He added that Galway City Council had been extremely proactive in bringing this long-awaited development to reality.
Canadian restaurant chain Pita Pit and Japanese eatery Musashi are to join Krispy Kreme in trading out of a newly redeveloped block at Ireland’s largest retail and leisure destination, the Blanchardstown Centre in north Dublin.
Both of the new units will extend to around 170 sq.m (1,829 sq.ft) and will include outdoor seating and dining areas, according to management company Multi Ireland. The expansion of the dining facilities comes after the recent opening of the first Krispy Kreme store in Ireland, which has attracted continuous queues for its own brand of doughnuts.
Pita Pit’s new outlet will be its first in Ireland. Founded in 1995 as a healthy alternative to fast food, the company has more than 500 outlets worldwide, mainly in the US and Canada.
The final unit in the block will be occupied by sushi and noodle bar Musashi, which already has five existing restaurants in Dublin. The new Blanchardstown outlet is the first in a shopping centre environment. Already open at the same block is Esquires, the international coffee house chain.
Multi Ireland has spent the past 12 months redeveloping the block, which had been vacant for several years. Putting this space back into productive use is expected to broaden the appeal of the Blanchardstown offering and add around €800,000 to the rent roll.
Simon Cooper, head of leasing, said Multi Ireland was particularly pleased that Krispy Kreme had selected Blanchardstown for their “debut Irish outlet”.
Dublin Airport Central, a major new office development in the heart of the airport campus, has landed a high-profile anchor tenant for the first of two headquarter-style buildings now under construction.
US multinational food company Kellogg is to relocate its 220 Irish and European office staff to Three Dublin Airport Central, where the six-storey block will be located close to Terminal 2.
Kellogg will take 3,600 sq.m (38,750 sq.ft) of the 8,500 sq.m (91,494 sq.ft) in the first block at a rent of €363 per sq.m (€33.75/sq.ft). Car parking spaces will cost an additional €1,750 per space.
Kellogg is currently based at Airside Business Park on the outskirts of Swords and expects to begin the fit-out of its new headquarters by the second quarter of 2019. The company will have the use of 2½ floors and around 65 car-parking spaces in the block, which is being built to international standards.
Construction is also well advanced on a second block, Two Dublin Airport Central, which will extend to about 11,500 sq.m (123,786 sq.ft).
The Dublin Airport Authority has planning permission for four corporate buildings, with 41,700 sq.m (448,854 sq.ft) of offices and associated facilities. DAA chief executive Dalton Philips said he was delighted to have secured Kellogg as the first tenant.
“We can’t wait to welcome Kellogg and its employees to their new home. Ireland is well recognised as a world-class location for business and Dublin Airport Central can accommodate the requirements of major multinationals such as Kellogg and also Irish firms seeking a modern, flexible location with unmatched connectivity.”
The two office buildings under way are the first newly constructed blocks at the airport and follow the redevelopment of the 1960s former Aer Lingus headquarters, which is now known as One Dublin Airport Central and accommodates about 500 ESB international staff.
With construction of the two new office building well under way there has been “very strong interest in Dublin Airport Central from a range of potential tenants,” according to Brian Coppinger, head of Dublin Airport Central.
He said the business park appealed to internationally-focused firms due to its unrivalled location, the high quality of the buildings, the amenities available on site and the flexibility for future growth.
The Dublin Airport campus is home to more than 200 businesses, which together employ more than 19,000 people. It has more than 30 restaurants and cafes, a range of retail outlets, and leisure facilities including a gym and swimming pool.
Last year Dublin Airport handled 30 million passengers and so far this year the numbers are 6% higher.
Handling the letting along with agent Bannon is BNP Paribas Real Estate. Cushman & Wakefield acted for Kellogg.
Currys PC World is coming to Waterford Retail Park. The 13,000 sq.ft. fit-out has commenced and it is due to open the end of August.
Waterford Retail Park is a premier retail park with a high profile location along one of the main access routes to Waterford City from the M8 and N25 (Cork Road). Anchored by Harvey Norman. The other retailers are Homestore & More, Halfords, Home Focus, EZ Living Interiors and Maxi Zoo. Waterford Retail Park celebrates its 10th year anniversary this year.
James Quinlan of Bannon, who is the letting agent for Waterford Retail Park, said “We are delighted that Currys PC World have decided to join the strong tenant line-up in the retail park. Costa have also agreed a deal in the park which will give customers the food and beverage offer that will improve the overall shopping experience at the park”
For further letting opportunities contact Bannon today on 01 647 7900
Irish Life has found tenants for a newly developed office block at the Irish Life Centre on Lower Abbey Street, Dublin 1.
Depfa Bank, formerly based in the nearby IFSC, has completed contacts to lease 1,856 sq.m (20,000 sq.ft) on the third and fourth floors of Block 5 at a rent of €484 per sq.m (€45/sq.ft).
The second tenant, Apex Fund Services, is understood to have made a commitment to lease 1,383 sq.m (15,000 sq.ft) at a headline rent similar to the one agreed with Depfa Bank.
Block 5 has an overall floor area of 3,716 sq.m (40,000 sq.ft) and is finished to a high specification, including a reception area of 1,600 sq.ft. The building benefits from the creation of a new civic plaza to the front.
Depfa Bank is a wholly-owned subsidiary of the German state agency, FMS Wertmanagement.
Apex Fund Services was established in Bermuda in 2003 and has around $350 billion in assets under management.
Deirdre Hayes, head of property asset management at Irish Life Investment Managers, called the wider Irish Life centre campus an integral part of the Dublin landscape. So it was essential that the latest phase provided a quality, sustainable space that met market requirements. “We are delighted with the outcome and welcome both Apex and Depfa Bank as our new neighbours within the development,” she said.
“Great to be involved in another successful Irish Life office project.” – Bannon Office Department
The international law firm Walkers will double its Dublin office space when the firm moves shortly to The Exchange at the International Financial Services Centre.
Walkers will occupy 1,781 sq.m (19,178 sq.ft) on the penthouse floor of the five-storey building, which has an overall capacity of 9,986 sq.m (107,500 sq.ft). Walkers will pay a rent of €538 per sq.m (€50/sq.ft) under a long-term lease agreement.
The firm has been based in Ireland since 2010. Its primary focus is to provide the cross-Border market with legal, taxation and listing services. The firm also advises international and domestic financial institutions, corporates and real estate developers on a range of Irish law and taxation matters.
The Exchange was developed by the Cosgrave Group in conjunction with the IPUT pension fund. The new office block fronts on to Mayor Street and is located beside George’s Dock Luas station.
Louise Doherty of Bannon acted for the tenant.
An Italian-themed restaurant is to open at the redeveloped Royal Hibernian Way just off Grafton Street in Dublin 2.
It is Friends First’s most significant letting at the scheme since taking full control of the property and securing planning permission to amalgamate a number of the retail units to restaurants.
The new restaurant will be in a 362 sq.m (3,900 sq.ft) unit which will be leased by the Press Up Entertainment Group which will provide an all-day offering from breakfast to dinner. It has an entrance from South Anne Street as well as considerable frontage into Royal Hibernian Way and the rent is likely to be more than €330,000 a year.
Darren Peavoy of Bannon, who handled the letting, says the “repositioning” of Royal Hibernian Way is now taking shape to provide a “food-anchored, lifestyle-orientated scheme which will have a cluster of like-minded users in a pleasant controlled environment, something that the Grafton Street area and city centre has been missing”.
Another restaurant unit of 222 sq.m (2,390 sq.ft) is also available for letting at Royal Hibernian Way. It is under offer at around €85 per sq.ft.
Royal Hibernian Way is already home to the Lemon and Duke bar run by Noel Anderson with business partners from the Leinster rugby team including Jamie Heaslip, the Kearney brothers, and Sean O’Brien.
The surrounding area is due to get a boost with the impending opening of the Luas Cross City line and the opening of nearby refurbished office blocks, including One Molesworth Street.
Article in the Irish Times
Retailing has been making the headlines here with concerns over sales growth and possible rent increases at some shopping centres. However, retail sales growth has been steady, and prime rents are stable, so what is the big issue that is behind the unease? The answer is, of course, the accelerating shift into online retailing, and the question for retailers and the property market is whether that is a threat or an opportunity?
The recovery in retail spending has been steady since 2013 but one would have expected it to be better, given increased employment, incomes, population and tourism. I suspect that the scars of the recession are only beginning to heal for many people and there remains a nervousness about spending, and taking on debt. But the proportion of spending going online is increasing exponentially, and some retailers are capitalising on it better than others.
For example, last week saw Ralph Lauren announce that it is to close its flagship Fifth Avenue Polo store in New York. The retailer has been hit by online retailing and said that it going to improve its e-commerce platform and explore “new retail concepts”. Locally, Retail Excellence Ireland report that many e-commerce sites saw a doubling in turnover for the weekend following Black Friday, compared with the previous year.
I’m of an age and disposition that was slow to adapt to this new way of buying, but if I think about the proportion of spending my family has started doing online over the last year, and if we are in any way typical, then I suspect that we are only at the start of this new era in Ireland.
Retailers will have to continue to shift into multi-channel distribution, where they find the right blend of physical shops that are no longer just retail outlets, but also serve as showrooms for later online purchase, delivery depots and click-and-collect locations.
In the long term, this has to see a reduced demand for shops, although I think this will be felt most in secondary locations, as flagship retail outlets in prime locations will become even more important to the retailer. The change is already benefiting the industrial market, with increased demand for logistics centres to serve this new demand.
The logistics of how to deliver goods to customers is a challenge and retailers are grappling with combinations of deliveries from shops and warehouses. Last week we bought two household items online from a Dublin department store and the parcels were delivered on two different days by An Post. One had come from the shop, and the other from a centralised warehouse.
We bought three household items from a store in London earlier this year, for a fledgling’s flat there. It was interesting to hear that the items were individually delivered by a logistics contractor on three separate days, which must undermine the viability of the transaction. Incidentally, it occurs to me that An Post have a huge opportunity to capitalise on this growing business as they are already passing every door in Ireland, every day, and should be able to undercut competitors.
Developers and institutional investors are reacting differently to this structural change and while some developers and funds are quietly expressing concern, several European funds see the increasing importance of prime retail locations as a growth opportunity and have redoubled their acquisition of the best high street locations. In Ireland, prime retail investments continue to be snapped up by institutional purchasers.
Conversely, there is also a transition by pure online retailers into taking physical space.
The challenge for retailers is to maximise the quality of their high street presence and their customers’ experience there, the ease of use of their website and the efficiency of their distribution channels-whilst embracing the changes in technology that are altering how we shop.
Strong performance in Ireland’s commercial property sector continued throughout 2016, albeit at a slower pace than was seen in 2015, with total returns across all property types up 12.4% annually according to recent figures from the SCSI/IPD Ireland Quarterly Property Index.
The market picked up across all property types in Q4 following a lull in Q3, with industrial leading the way with a total return of 4.6% on quarter bringing annual returns to 19.3% year-on-year. Within this sector the strongest performing category was Industrial North Dublin, which recorded a total annual return of 20.4% driven by capital and rental value growth of 12.6% and 12.2% respectively.
Retail was a close second in Q4, returning 4.3% to bring annual growth to 12.9% relative to 2015. This growth was driven predominantly by prime high street properties on Grafton and Henry/Mary Street, which saw annual returns on investment of 17% and 16.5% respectively. Most importantly, provincial retail is finally beginning to show signs of recovery with capital and rental value growth of 6% and 5.6% driving a total annual return of 14.5%.
Office returned 3.3% in Q4 with prime City Centre properties driving growth to bring total returns to 11.9% annually. This was driven by continued strong growth in prime city centre locations, with Dublin 2 and 4 recording returns of 11% and 12% respectively.
An annual return of 12.4% is almost double the 7.6% recorded in the U.S. and more than three times the 3.5% growth recorded in the U.K., where June’s ‘Brexit’ referendum heavily impacted rental and capital value growth in the latter half of the year. This marks Ireland as one of the best performing commercial property markets again in 2016.
The main quarterly and annual results for 2016 are outlined above.
Kate Ryan, Research Department
Despite retail sales statistics showing a sluggish performance, estate agents report increased activity by retailers and this is reflected in falling vacancy levels in shopping streets and centres.
Agents differ about the impact of Brexit. Marie Hunt of CBRE acknowledges a noticeable increase in cross-border shopping in some border towns in July and August following the weakening of Sterling but says that Irish consumers don’t appear to have curtailed spending in the aftermath of Brexit.
However, another agent says that some UK fashion retailers have pulled back from their Irish expansion plans or put them on hold following Brexit. They are expected to monitor future indices from the Central Statistics Office to see how retail sales trends develop.
In July retail sales in the Republic fell 0.5% when compared with June this year after car sales are excluded. The worst affected shops were clothing, footwear and textiles down 2.5%. Other retail sales were down 2.4% and food, beverages and tobacco were down 0.9%.
Neil Bannon of Bannon points to the other retail sectors that showed continued growth in July, notably furniture and lighting up 5.3% and books, newspapers and stationery up 2%. Furthermore, while the fashion sector fell in both July and June, over the three months including May, fashion sales are 8.7% ahead of the corresponding three months of 2015. All businesses excluding motor are 4.6% ahead.
“We don’t need spectacular growth because there’s always a fear that such growth cannot be sustained. It’s better to have a solid, steady performance,” says Neil Bannon.
Bannon’s agency manages 40 shopping centres in Dublin and around the country and are letting agents on about a quarter of the market. He says there has been a consistent improvement in the retail sector since September 2013.
“It’s not just Dublin; it is also happening around the country on the back of the growth in employment,” he says, and instances Athlone Town Centre where Marks and Spencer are anchors. “This centre has shown retail turnover increase more rapidly than footfall,” Bannon adds.
Other healthy signs have been the drop in examinerships as well as reduced vacancy levels, as the last 12 months have seen the re-emergence of retailer demand for space.
He cites the example of a shop in a north Dublin suburb that had been vacant for almost 10 years and even after the landlord had dropped his asking rent to €20 per sq.ft there were still no takers. Then this year three retailers expressed an interest and made offers, with the highest being 20% more than the rent they would have paid for it last year.
Lisney’s most recent retail report suggests that with increased competition from retailers for vacant space, some landlords have become more choosy about the tenants they are willing to accept for premium retail outlets.
Earlier market indicators suggested that premiums for leases were going to make a comeback this year, particularly on prime shopping streets. However, it would appear that while there are retailers in the market willing to pay premiums in order to acquire prime units, landlords are often not willing to accept them as tenants due to the proposed use (or the quality of their track record).
Lisney’s Emma Coffey says the food sector is driving demand in the city centre, with restaurants and coffee shop operators actively seeking properties in Dublin 2, 4 and 6. However, there was little or no stock available for them to choose from. “In some areas such as Wicklow St, retailers are willing to pay key money. In other areas the demand is not that strong,” says Coffey.
Furthermore, there have been signs that some UK retailers and some restaurant owners are showing resistance to higher rents and requests for key money.
A CBRE survey shows that prime Dublin retail rents have risen almost 39% since the crash. While this places them ahead of all the UK’s regional cities such as Birmingham and Manchester, nevertheless these rents are very much in the middle ranks in European cities.
Neil Bannon says that such higher rent arise because others are competing to get the space.
One area of Dublin that looks set to get a retailing boost in the near future is the eastern side of O’Connell St. Traditionally the western Henry St side, with its large fashion stores, is the favoured side of the street. But with the Luas extension scheduled to travel down Marlborough St and with Mike Ashley’s Sports Direct purchasing Boyers department store on North Earl Street for a reported €12m, the street’s eastern side and nearby retail premises may attract increased interest from a greater range of retailers.
An interesting test of the north city market will be seen when Kennedy Wilson completes the sale of its 3 mobile phone store on Henry St, for which it is asking €8.25m. Its current rent roll is €425,000, suggesting a net initial yield of 4.93%.
Ciara Connolly of Cushman & Wakefield’s retail department says some fashion chains are expanding both within and outside of Dublin. She instances Quiz, which has 10 stores in Northern Ireland and which in the last 12 months has opened in Liffey Valley, Blanchardstown and ILAC in Dublin as well as Douglas in Cork and Crescent in Limerick.
The Bestseller chain, which includes the Jack and Jones, Dila and Selected brands, is also active. Its Selected chain has opened in Dundrum and is looking for stores in Cork and Limerick. The Inditex group, whose Zara brand is long established in Ireland and which last year opened a Massimo Dutti store on Grafton St, is looking to expand its younger fashion brands, especially its Stradavarius and Bershka in new locations. Meanwhile, its Zara Homes is looking at the Grafton St area for a possible new store.
Report in the Independent
The Swan shopping centre in Rathmines is to get a major boost with the decision by Dublin’s fine food emporium Fallon & Byrne to open a new flagship food hall, delicatessen and casual eatery in the D6 centre.
The new 929 sq.m (10,000 sq.ft) facility will trade alongside anchor tenants Dunnes Stores, Omniplex Rathmines and 15 new traders since the centre was refurbished and upgraded at a cost of €2m.
The owners claim to have re-positioned the Swan centre as “the most dominant shopping and leisure destination in the Dublin 4 and 6 areas”.
Outdoor terrace
Fallon and Byrne’s new outlet will be based in a south-facing contemporary extension complete with an outdoor terrace with ample seating offering the prospect of early-evening sunshine. The stylishly designed extension on Castlewood Avenue will bring a casual dining offering to the area together with a gourmet food hall carrying the best of both Irish and international artisan product brands.
Since the brand’s inception in 2006 Fallon & Byrne has become one of Dublin’s most successful food destinations, delivering a New York-style food emporium, restaurant and wine cellar from its premises in Exchequer Street.
Fiona McHugh, managing director of Fallon & Byrne, said they loved the plans to create an elegant, contemporary extension to the Castlewood Road side of the centre and “very much look forward to creating a beautiful food hall to match”. Paul Anderson, managing director of Sawbridge, owners of the Swan, said the centre was now almost fully let and the addition of Fallon & Byrne as their third anchor tenant firmly placed them as “the primary retail destination within Dublin 6”.
Report in the Irish Times
The American health food brand GNC is to open its 16th Irish store at 21 Henry Street, Dublin 1, where it will be paying a rent of €210,000 per annum. The shop was one of four adjoining outlets along with another premises in the GPO Arcade bought by Irish Life two years ago as part of the Capital Collection for over €30m.
GNC’s new shop has a ground-floor retail area of 91 sq.m (979 sq.ft) and a total of 331 sq.m (3,562 sq.ft) over four floors.
With the four adjoining buildings under its control, Irish Life may well opt to amalgamate them at some future date to accommodate international traders looking for a large store. To facilitate such a arrangement, GNC’s new 10-year lease includes a rolling break option for the landlord after year five.
Daniel McLaughlin of Bannon, who handled the lease for Irish Life, said the letting demonstrated the recovery in rents on Henry Street.
The Dublin Airport Authority (DAA) has had early success with its new business park beside the airport with the completion of legal contracts to lease the former Aer Lingus headquarters to ESB International (ESBI).
The new tenant is to move from offices on St Stephen’s Green to the former airline HQ which is undergoing a radical redevelopment at a cost of over €10 million. The 45-year-old block is to be given a grade-A specification, an A3 energy rating, a new triple-glazed façade, much improved insulation and a T50 broadband service throughout.
Rent saving
ESBI has agreed a rent of about €297 per sq.m (€27.60 per sq.ft) for the gross area of 7,524 sq.m (81,000 sq.ft) – probably a significant saving on the rent it is paying Irish Life for about 7,432 sq.m (80,000 sq.ft) in Stephen’s Court beside the former Anglo Irish bank HQ on St Stephen’s Green.
Irish Life is expected to upgrade the block and put it back on the market at an even higher rent given its prime location and the shortage of high volume space in the south inner city. ESBI rents the St Stephen’s Green offices on several leases close to running out. The six-storey-over-basement block at the airport is expected to be ready for fit-out early in the new year. The long-term lease includes break options in years five and 10.
Lucy Connolly of the Bannon agency handled the letting along with BNP Paribas Real Estate. Michael Healy of Savills advised the new tenant.
ESBI is a leading global engineering consultancy specialising in energy-related projects. It employs more than 700 staff across operations in Europe, the Middle East and Asia.
DAA originally set a long time frame of 25-30 years for its 70-acre business park but, after the earlier-than-expected success with the old Aer Lingus building and a favourable response to the marketing campaign highlighting its strategic location, insiders believe that it is only a matter of time before it unveils its plans for the next phase of four blocks with an overall floor area of 37,160 sq.m (400,000 sq.ft).
The airport business campus has considerable advantages over most parks in the Dublin area because of its superb road system and the fact it is serviced by no fewer than 1,500 local and national bus and coach movements on a daily basis.
The park is set to benefit from the airport’s direct links with Europe – there are about 108 daily flights to and from London alone – as well as America and the Middle East.
The ambitious plans by the DAA to broaden its revenue base through the development of a top-of-the-range business park comes after Manchester and Schipol (Amsterdam) airports also signalled their intention to open up their campuses to commercial property tenants wanting to avail of the wide range of support services.
Article in the Irish Times
Bannon has secured a new tenant for a modern warehouse unit extending to 9,450 sq.ft at Unit 6.2 Woodford Business Park, Santry. Hella Group, the global car parts manufacturer, has agreed a letting of Unit 6.2 to cater for expanded product lines in the Irish market and to secure the company’s future growth.
View Industrial property listings
For further information on similar units please contact Niall Brereton, of Bannon today.
Regatta, the high performance outdoor wear brand, is opening a flagship store at the Pavilions Shopping Centre today, with another store to follow in Athlone Town Centre soon. Congrats to the Bannon letting team.
Regatta is the UK’s largest supplier of outdoor and leisure clothing and a leading player in the European market. The chain currently operates a €10 million-a-year wholesaling business and 10 concession outlets based in Shaws department stores, together with a standalone retail outlet in the Crescent shopping centre in Limerick.
High Court decision in the Bewleys case overturned. Supreme Court unanimously finds that the upward only rent review provision in the lease stands.
The decision means Bewley’s must continue to pay the €1.46 million rent up to 2017 and the cafe company said today it was “immensely disappointed” with the outcome.
Bewley’s had claimed its lease allows rents to fall as well as fluctuate upwards while Ickendel claimed the terms meant rents cannot fall. The High Court heard various reports indicated commercial retail rents have fallen by over 50% while a 2013 judgement in the Circuit Court fixed a new rent on a Grafton street property at just 53% of the previous rent.
The court was concerned with construing rent review provisions in a commercial lease which are articulated in conventional terms, she said. If Ickendel was correct, the rent payable was €1.46 million but if Bewley’s was correct, it was some €728,187.
Sourced from the Irish Times
Under previous law dating back to 1838, a subsequent occupier of a commercial property could be held liable for up to two years arrears of rates which could not be recovered from the previous occupier. Section 32 of the Local Government and Reform Act 2014 removes liability from subsequent occupiers and instead imposes new duties on owners of commercial property.
The Act defines an owner as any person other than a mortgagee not in possession who is entitled to receive the rents from the property thus extending its application to landlords, receivers, liquidators and mortgagees in possession.
Under the Act, where a property or an interest in a property is transferred so that a change in the party primarily liable for rates occurs, two obligations are introduced.
1. An owner must notify the relevant Local Authority of the transfer within two weeks. It should be noted that a transfer would include not just the sale of a commercial property but also leases, assignments or surrenders.
2. The party transferring the property or interest in the property is obliged to discharge all rates for which he/she is liable for and on the date of the transfer.
Even though the Act provides that the primary liability of the previous occupier for outstanding rates is not affected, an owner can become liable for up to two years rates due by a previous occupier if the owner fails to notify the local authority within the permitted two weeks – or if the arrears are not discharged at the time of the transfer, even if those arrears in fact relate to another party’s occupation of the property.
Any rates due by an owner, and not discharged, shall remain on as a charge on the property for up to 12 years.
Potential purchaser/lessees will need to seek evidence at the time of the transfer that all rent arrears have been cleared and obtain evidence of notification of transfer to the local authority. Owners not in occupation will need to be particularly vigilant in insuring the prompt discharge of rates by occupiers given the risk of the possible liability for any arrears passing to that owner.
These changes come into effect on 1 July 2014.
A Summary of the Commercial Property Review & Outlook 2014 published by the Society of Chartered Surveyors Ireland (SCSI).
The office sector in Dublin is leading the way in the Irish Commercial Property Market. The SCSI Commercial Property Review & Outlook 2014, published in conjunction with Amárach Research, confirms that prime office rents in Dublin are between €350 per square metre and €377 per square metre in Quarter 1 2014 based on improved activity levels at the end of 2013 and start of 2014. There was a 23% increase in office take up in 2013. While the turnaround was mainly driven by Dublin’s office market, improvements in the Irish economy in the second half of 2013 led to growth in both the retail and industrial sectors by the end of Quarter 4. The vacancy rate for prime office space has fallen close to 9%, and two thirds of Chartered Surveyors expect the supply of prime office space in Dublin to decrease significantly over the coming 12 months.
Take-up in the industrial sector increased by 18% in 2013 and rents remained steady in 2013. Although there is an oversupply in certain locations, there is increased demand for prime industrial space, in particular by online companies with a greater need for modern logistics and distribution centres. Industrial prime rents have remained steady in Dublin at €61 per sq.m. per annum. Industrial rents increased in all categories in Leinster.
Rents for prime retail in Dublin continued to fall in 2013 and are now just above the €4,000 per square metre per annum mark. Rents for major town centre style malls showed a marginal decrease, indicating that rents in this sector have stabilised. Rents for prime retail increased in Leinster and are now at €325 per square metre, an increase of 7.3%. Rents for prime retail continued to fall in Munster in 2013 reflecting tough trading conditions in Cork City, Limerick City and Waterford City. On the other hand, rents increased across most retail categories in Connaught/Ulster in 2013, possibly reflecting more buoyant conditions in Galway City.
Approximately €1.9bn was invested in the Irish property market in 2013, which is three times more than in 2012. According to a report on Emerging Trends in Real Estate Dublin is the top spot in Europe for new investments in 2014. This is attributed to Ireland’s economic turnaround, falling unemployment and a forecast GDP growth of 2% in 2014, as well as the perception that prices have bottomed out and are beginning to recover. The main demand was for large office properties and growth was also recorded for industrial and retail properties.
Over half of investment spend in 2013 came from international investors with strong demand from the US, Europe and Asia. This is set to continue as an international report ranked Dublin as the number one location in Europe for new investment in 2014. This predicted growth is based on Ireland’s economic recovery.
Non-agricultural land sales were up four fold between 2012 and 2014. This activity in Dublin is being driven by the improving office market and the increasing demand for family homes in the residential market.
For full report please go to www.scsi.ie/commercialreport2014
Both the housing and commercial construction sectors saw stronger rises in activity than in February during March, with rates of expansion at three-month highs in each case. Meanwhile, the rate of decline in civil engineering activity slowed for the second month running and was the weakest since last November.
Commenting on the survey, Simon Barry, Chief Economist Republic of Ireland at Ulster Bank, noted that:“The recovery in the Irish construction sector gathered pace at the end of the first quarter, according to the March results of the Ulster Bank Construction PMI survey. The overall PMI index jumped to 60.2 last month as the rate of expansion picked up to its fastest pace in over eight years. Housing activity continued to rise sharply in March with last month representing the ninth month in a row of expansion linked to residential projects. Commercial activity also continues to expand briskly, while the pace of decline in civil engineering eased for the second month running.”
New to the market is Block 9 Blackrock Business Park, Blackrock, Co. Dublin – For Sale or To Let
(On the instructions of Brendan O’ Donoghue, Russell Brennan Keane (Receiver).
Two storey building extending to 438 sq m. (4,715 sq ft.) with potential for each floor to be self-contained with separate access. Block 9 also features high quality specification with air conditioning and 9 surface car parking spaces included with the property. Current occupiers in the park include; Tektronix Communications, CIT, An Post, Skill Pages and HRBR.
Please view our online brochure: Block 9 Blackrock Business Park, Blackrock, Co. Dublin
For further information please contact Louise Doherty or Katie Williams on 01 6477900
The Lafayette Building, one of Dublin’s best known privately owned structures is coming to the market through Bannon with a quoting price of €3.5m.
Redeveloped by Treasury holding in the late 90’s, this striking six storey over basement building dominates the city’s streetscape on the southern side of O’Connell Bridge. It has uninterrupted views over the City’s principle thoroughfare including major city landmarks such as the GPO, The Spire and The O’Connell Statue.
The basement, ground and first floors of the building were let to Manchester United back in 2000, who only occupied the property for a couple a years before withdrawing from Ireland. They still pay their rent of €520,000 p.a but have sub-let the property to the Lafayette Bar and Café who run a night club from the basement and bar from the ground floor.
The second floor and part 3rd floors are separately leased and occupied by The Blood Bank. The remaining upper floors comprise 14 residential units which have already been individually sold off.
The combined income from the building of €625,453 would deliver a prospective purchaser an initial yield of 17%. This return will be dramatically impacted should Manchester United action their break option in August 2015, despite the 9 month outgoings break penalty. However according to agents Bannon this is where the asset management opportunity lies.
Of particular relevance in this regard will be the new Luas ‘Crosscity’ line which will have a stop literally outside the buildings front door. According to Rod Nowlan of Bannon ‘This will be a real game changer for the occupational prospects of the building and this side of Westmoreland Street in general’. Including the break penalty, income will effectively continue to flow form the Manchester United portion of the buildings until mid-2016 which is only months from the anticipated completion of the Luas Cross City Line.
Due to the looped nature of this line this particular stop is likely to be one of the busiest stops on the entire Luas network.
Bannon, on the instructions of the local Quinn family, are bringing to the market a modern mixed-use investment opportunity situated in the heart of Sligo with an asking price of €3.7m.
Known as Castlewood House, the opportunity comprises a modern commercial and residential development which was completed in 2010 and finished to an exceptionally high standard. The property was developed by local businessman Kevin Quinn and family.
The development has dual frontage onto both Rockwood Parade, along the Garrivogue River, and Castle Street.
The sale includes a large department store fronting Castle Street which is occupied by Heatons, together with three floors of self-contained office accommodation, 16 apartments and car parking.
Heatons occupy the 2,341 sq m department store on a 25 year lease from 2010 with over 22 years unexpired term certain. The current rent of €200,000 per annum (set in 2010) will be subject to a fixed uplift in 2015 to €250,000 with market reviews five yearly thereafter. The office accommodation is accessed via a separate access and lobby from Castle Street.
The residential element in its entirety includes 21 apartments, 16 of which are the subject to this sale (9 x 1 beds and 7 x 2 beds). 15 of these 16 apartments are currently occupied and producing a gross income in the region of €120,000 per annum. Each apartment is fitted to a high standard with modern fixtures and fittings throughout. The apartments, many of which have river views, are developed within two blocks and benefit from a landscaped courtyard area. These apartments are amongst the highest quality outside of the capital.
A basement car park with over 50 spaces provides parking for the residential and office elements and also forms part of the sale.
David Carroll of Bannon, who will be handling the sale, comments ‘we expect there to be considerable interest in the opportunity given the secure long term nature of the Heaton’s income and the opportunity to acquire a portfolio of residential units with a proven high occupancy record in the heart of Sligo’. The property will be sold in three lots with Lot One comprising the commercial element and car park, Lot Two the residential element and Lot 3 the entire.
Des Byrne, Director
Re: Ickendel Ltd. v. Bewley’s Café Grafton St. Ltd.
Bewley’s hold this premises on Lease for a term of 35 years from 6 August 1987 and the Lease incorporates rent reviews on 1 January 1992 and at five yearly intervals thereafter.
The Initial Rent (or the First Reserved Rent) in the Lease was €213,316 from the date of commencement.
There were rent reviews in the premises every 5 years from 1992 until 2007. There was no issue at these times in relation to the interpretation of the rent review clause as the market rent at each of these review dates was higher than the rent then payable.
In 2012 the landlord sought a revised rent arguing that the rent on review should be the greater of the open market rental value or the passing rent of €1,463,964.
The tenant argued that the rent should be the higher of the open market rent or the Initial Rent (the 1987 rent) reserved by the lease being €213,316.
As the matter could not be resolved the case was referred to the High Court before Mr. Justice Charleton by way of a construction summons.
The Judge made reference to the rent review clause in the Lease in which it is stated that the revised rent on review shall be ‘…equal to the greater of (A.) the rent payable hereunder during the preceding period or (B.) such revised rent as may time to time be ascertained in accordance with the provisions in that behalf contained in clause 6 hereof (whichever shall be the greater)..’
The case effectively centred around the meaning of the words ‘preceding period’.
The Judge felt that there was ambiguity within the rent review clause and stated, inter alia, and by reference to other clauses in the Lease that if the ‘preceding period’ was to be held to be the period immediately prior to the rent review date that the word ‘preceding’ should have been qualified in some way to ensure that there was no misunderstanding.
Taking everything into consideration the Judge held that the correct interpretation of the rent review clause was that the rent on review was to be the open market rent but that such rent could not be lower than the initial rent of €213,316 and dismissed the contention that the rent on review could not fall below the passing rent of €1,463,964.
The Judgement in this construction summons case is based on the particular wording of the lease of the Bewley’s Grafton Street building and consequently highlights the potential dramatic impact on rental and property values that may turn on a word or lack of a word within a rent review clause.
I recommend that you have your rent review clause/lease examined by a rent review expert to establish what impact this judgement may have on your property.
Bannon has been appointed to let a 2,215 sq m (23,850 sq ft) modern headquarter facility at Woodford Business Park, Santry.
Until recently it was the Irish headquarters of Staples, the global supplier of office products, who vacated as part of an overall restructuring of their operations.
The building comprises two levels of office accommodation which are finished to a high standard and account for approximately 54% of the overall floor space. The interlinking warehouse facility features 9m eaves and is fitted with racking.
The e-brochure can be viewed at: brochures.bannon.ie/santry-woodford-business-park-6-2-6-3 or please contact Niall Brereton on 01 6477900
Rent reduction discussions are commonplace in the current Irish Property market particularly in the retail area but they need to be seen for what they are; A Re-negotiation of Existing Lease Terms.
If you are in the business of re-negotiating lease terms then why stop at the rent? It is important that landlord’s asset managers and their funders are live to the opportunity to exchange potentially lucrative improvements in their overall lease profile for any rental concessions made to a tenant. We have set out some examples in our guide:
Rent Reduction Negotiations – A Guide for Landlords (PDF)
A ground floor retail unit of 35 sq m (380 sq ft) at 99 Morehampton Road, Donnybrook, Dublin 4, is available to rent for around €20,000 per year.
Located in the very heart of Donnybrook Village, the unit is close to Donnybrook Fair, Boots chemist, Butlers Pantry, Nourish and AIB amongst others.
Jennifer Mulholland of Bannon, who is handling the letting commented that the unit is generating considerable interest from a variety of occupiers due to its prominent location, which benefits from high levels of passing motor and pedestrian traffic.
The international bullion and wealth management company Goldcore have leased No. 14 Fitzwilliam Square, Dublin 2. Founded in 2003 as a precious metal specialist, Goldcore have grown significantly in the last 8 years. The four storey over basement Georgian Building has a floor area of 383sq m (4,123 sq ft) and the rent paid is understood to be in the region of €215 per sq m (€20 per sq ft). Goldcore have taken a lease of 7 years. The Georgian building has undergone extensive refurbishment and modernisation while retaining many original features. Goldcore were represented by Bannon while HT Meagher O’Reilly acted on behalf of the landlord.
Hong Kong based telecoms giant Hutchison 3G, is taking extra space at its new headquarters in One Clarendon Row, the impressive new development on Clarendon Street and South King Street. Hutchison 3G originally leased approximately 1,858 sq m (20,000 sq ft) on two floors over 14 months ago. They have now taken an additional 678 sq m (7,928 sq ft) on the second floor which is currently being fitted out. This will give them a total of 2,556 sq m (27,928 sq ft) within the building.
Agents Bannon are quoting €377 per sq m (€35 per sq ft) for the remaining office suite which comprises 335 sq m (3,606 sq ft) of space. One Clarendon Row will suit companies seeking offices with a prestigious address with superb transport links including the St. Stephen’s Green Luas stop which is a mere one minute walk from the building. Employees of companies locating here will further benefit from having the best choice of shops, restaurants and bars in Dublin literally on their doorstep.
Part of an 8,055 sq m five-storey-over basement development also incorporating international retailers Zara, H&M and Warehouse, One Clarendon Row is one of Dublin City Centre’s most impressive commercial developments.
These stunning offices are completed to a very high level of specification to include energy efficient chilled beam air-conditioning through-out, raised access floors, suspended metal ceiling tiles, extensive floor to ceiling glazing, an impressive entrance lobby with 3 high speed glass lifts leading to a stunning feature atrium.
Bannon acted for the landlord while Savills acted for the tenant.
Bannon are delighted to announce our recent appointment as Property Advisor to ESB in respect of their major 400,000 sq.ft. office development on Fitzwilliam Street.
This project will be one of the most important commercial property developments to be constructed in the country over the next decade. ESB will set a new benchmark for office developments in Ireland with a heavy emphasis on sustainability and quality of design. Our appointment reinforces our philosophy of targeting high quality developments which require a unique skill set which our experienced and innovative team bring to every property development to which we are appointed.
The Bannon team handling the project includes Marcus Wren, Director Office Agency, and Emma Leonard, Associate Director on the Asset Management Team
Prominent corner unit facing onto Cope Street and Fownes Street with high levels of pedestrian footfall.
While British retailer Tesco plans 10 or more new Irish stores in the next 18 months, its more up-market rival Marks & Spencer is set to open its sole new Irish store this year in Cork.
Having secured M&S, Douglas Village Shopping Centre owners the Shipton Group follow with a pet deal of their own – a 6,000 sq. ft. letting at the opposite end of the centre from M&S, to pet supply company Maxi Zoo.
Marks are due to open their 15,000 sq. ft (22,000 sq. ft. gross) store in late November – in plenty of time for Christmas. They say they will bring 100 new jobs to the revamped centre, where Tesco are main anchor, owning their own 90,000 sq. ft. of space over two levels.
This week, Tesco announced an 8% rise in sales, and said their current €115 million expansion of 11 supermarkets could bring 750 jobs. Planned new locations include Waterford’s Ballybeg; Newcastle, Galway; Swinford in Mayo; Naas, along with recent openings in Dublin, Wicklow and Westmeath.
Over 1,000 job applications and CVs were received for M&S’s 100 new Cork jobs alone, and all posts are now filled. The company has 700 British outlets and 300 others in up to 40 countries worldwide. M&S opened in Clonmel’s Showgrounds last year.
The Love family’s Shipton Group redeveloped the 1970s Douglas Village Shopping Centre in ‘08/09, more than doubling it in size to 250,000 sq. ft., as part of circa €90m investment to include Tesco’s own unit (their largest in Munster).
It has close to 50 shop units, and 1,000 multi-level car parking spaces. One of the latest arrivals is Welch Sports, after a quality re-fit of the old Lifestyle Sports store.
Joint agents DTZ Sherry FitzGerald and Bannon this week confirmed a Douglas centre deal with Maxi Zoo to open a circa 6,000 sq. ft. unit, their eighth store here and their first to open within a shopping centre.
There are two circa 10,000 sq. ft. units in the old Tesco footprint available, at a quoted rent of c€30 psf, suitable for ladies fashions, a Next etc.
Quoted from Sitewatch, Tommy Barker, Irish Examiner
Bannon have recently been appointed by GoldCore Ltd to acquire new offices in Dublin 2/4. The search for the offices, which is well under way, will be geared towards modern offices ideally on a single floor comprising approximately 325 sq m with the ability to grow to 450 sq m over time.
Bannon are currently refining the search from an original list of thirty options to a final shortlist of five.
For further information relating to lease advice/property acquisitions, contact Katie Williams or Louise Doherty on 01 647 7900.
Bannon are delighted to announce the decision by An Bord Pleanala to grant planning permission for Chartered Land’s Dublin Central Development. This decision marks the culmination of several years work by the entire team involved. Bannon has been involved from the outset of this project which aims to deliver a major commercial development in Dublin City Centre which will re-establish this location as the premier retail destination for Ireland.
The development will occupy a high profile site of c. 2.17 hectares with extensive frontage (220 meters) on Dublin’s principle thoroughfare, O’Connell Street, which has been transformed in recent years with works carried out in its public realm. The scheme will also enjoy profile and access to Henry Street, one of Dublin’s busiest shopping streets with additional access onto Moore Street and Parnell Street.
The scheme will comprise in excess of 100,000 sq.m. (1.1 Million Sq. Ft.) of accommodation including 100 shops, restaurants, 700 basement car parking spaces and 22 apartments. Dublin Central will be anchored by the country’s largest Department Store comprising approximately 25,000 sq.m. Terms are agreed with John Lewis to occupy this major store.
Bannon are pleased to report strong on-going interest from major UK and international tenants interested in securing flagship store presence in Ireland. Dublin Central has been designed to provide large modern retail footprints that to date have been rarely available within the existing fabric of Dublin City. This development will represent the first major retail addition to Dublin City Centre since the Jervis Centre in 1996 which highlights the pressing need for the delivery of a scheme for the 21st Century. Due to the complexity in assembling a site of this size, this truly represents a once in a generation opportunity which will, upon opening in 2016, prove to be a major success.
National Toll Roads (NTR) has relocated their office within Citywest Business Campus to 3050 Lakedrive.
They have taken a short term sublease from Independent News and Media on approximately 160 sq.m.
NTR began their business as a developer and operator of toll roads involved in Public Private Partnerships for the construction, financing and operation of major extensions to the existing road network. They have since diversified into new areas to include waste, energy and water.
Bannon acted for NTR.
Legislation endeavouring to abolish the upward-only rent review is shaking the foundations of the property establishment. In most leases it means rents cannot fall below the prevailing rate when the rent is reviewed, usually every five years.
What is curious about the proposal is that it is in essence seeking to secure by force something that the market could, and is, providing anyway.
A potential tenant is currently perfectly within its rights to seek an upward and downward rent review within a new lease (in precisely the same way as a house buyer is entitled to seek a fixed or variable mortgage from the bank).
If all tenants demanded this clause landlords would have no option but to concede. In essence the debate is actually about the alignment of the landlords’ and tenants’ interests and is largely only relevant in respect of retail property.
In this regard landlords and their leases have been reacting accordingly. Leases that cater for base rents of 70% to 80% of market value with turnover top-up have been around for some time.
Similarly, 100% turnover-related rents are also on the increase and essentially represent the majority of rental deals done this year.
Consequently, whether as a result of the natural evolution of the market or indeed the abolition of upward-only rent reviews, investing in property will no longer be about the lease or even the tenant covenant, but the specific property. Private investors, institutions and bankers alike have, to date, been looking at properties as financial instruments. Cash flowing out via lease payments with the benefit of upward-only reviews in the context of a given tenant’s covenant to arrive at an acceptable return has been the flawed foundation of property investment over the past decade. The property adviser’s role in the exercise was often relegated to a rubber-stamping valuation exercise a few days before contract signing. This uninformed approach to property investment has been the stronghold of many naïve investment syndicates over the past few years and explains the success of the myriad of bank sales and leasebacks.
So if a newly let shopping centre is acquired from here on it will all be about the ability of that property now and in the future to justify its rent role. Sustainable rents will be the focus.
In this regard property becomes a living breathing commodity and not a financial instrument and understanding it will be the key to successful investment. Supply and demand will form the foundation of this analysis in the unregulated development markets such as the office and industrial sectors.
However, property-specific issues such as running costs, occupational obsolescence and ongoing refurbishment capacity will be of critical importance.
For the regulated retail development market it is much more complex. It is not just about the physical property and the likely supply and demand to the sector but also about understanding the tenants’ business and what makes them profitable in that specific property.
This sector above all others will see an alignment of interest between the landlords and tenants and understanding it will be key.
Rod Nowlan, Investment Director
Providing some much needed good news within the commercial property market, joint agents Bannon and Kelly Walsh have successfully let a further four units at St. Olaves Business Centre, Kinsealy.
In a more challenging property market, the joint agents have secured Eugene Berry Financial Services, Green with Envy Landscape Designers, McGovern Public Relations and Jim Clarke Project Management.
Just three units remain available which would suit a variety of service/office providers or destination retail uses such as a café, restaurant, beauty salon etc.
Developed by Newlyn Developments, St. Olave’s Business Centre is also home to Links Crèche and Montessori and Collier Broderick Resource Consultancy.
Despite the slowdown in suburban lettings Newlyn developments had adopted an innovative strategy of enabling the tenant to lease the units on a long term basis with the option to purchase them at an agreed price in the future.
Marcus Wren, Director with Bannon said “given the shortage of funding at present, this approach has proven extremely successful, allowing interested parties the luxury of testing the location by renting initially with the option to purchase once funding is more readily available. We continue to have significant interest from potential occupiers, mainly based in the surrounding north Dublin suburbs such as Malahide, Portmarnock and Kinsealy who are attracted by the high quality of the development, plenty of car parking, low occupational costs and the ease of access by car and bus to the city centre, airport and M50.”
The own door showroom/retail units range in size from 66 sq.m up to 321 sq.m and are finished to a high standard while also benefiting from ample car parking. Attractive terms are being offered with quoting rents in the region of €215 per sq.m.
For further information please contact Louise Doherty or Katie Williams on 01 6477 900
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