Bannon had a great evening at the annual SCSI dinner. It’s always an enjoyable event to meet fellow surveyors and friends of the industry. Thanks to Enda McGuane, President of The Society, who presided over the event.
The team at Bannon are taking to the streets again. We have signed up to run, walk or crawl 100 miles (160km) during February to raise funds for Cardiac Care for the Mater Hospital Foundation. Any support would be greatly appreciated, just click the link here.
Today, 1st February 2024, marks the launch of Ireland’s Deposit Return Scheme.
Over recent months, retailers throughout our nationwide retail management portfolio have been installing reverse vending machines in anticipation of this momentous occasion.
The DRS represents a substantial step toward achieving a more sustainable future. In line with the Single Use Plastics Directive, Ireland must ensure the separate collection of 77% of plastic beverage bottles placed on the market by 2025, with a further increase to 90% by 2029.
We invite you to join us in championing a sustainable future.
Our first Retail Pulse of 2024 has now gone live.
In this publication, Neil Bannon looks at a year of growth in the retail sector in 2023 building on 25 years of growth in Ireland.
To view the full report, please click here.
The latest Retail Sales figures indicate a very positive environment for retailers trading in Ireland. Since 2019, the last pre Covid year, retail sales have grown by over 25% in value terms, 20% when you exclude motor sales (which grew by a stunning 40% during the same period).
This growth is not restricted to the booming retail park sector, the value of clothing and footwear sales grew by almost 19%.
CSO (Central Statistics Office Ireland)
Commercial property managers face new challenges in 2024. These challenges need to be addressed using knowledge, expertise and technological innovation. As the economic, social, and technological spheres evolve, property managers are forced to look at what measures can be implemented to ensure the smooth operation of commercial spaces.
Based on industry data and expertise, the Bannon Property Management team forecast 6 key challenges for 2024:
Economic uncertainty:
The global economic volatility has impacted businesses and the real estate industry. Maintaining profitability and sustainability of commercial properties whilst navigating inflation, interest rate fluctuation, economic uncertainty and the aftermath of the COVID-19 pandemic, is a complex balancing act. Property managers play a vital role in offsetting these factors by implementing costs saving strategies and ensuring value for money for occupiers. It is also essential that property managers stay informed about market trends, fostering relationships and embracing technology for efficient operation of real estate assets.
Sustainability and Environmental, Social and Governance Compliance:
In 2024 there will be a continued focus on environmental, social, and governance (ESG) criteria in the real estate sector. Property managers are tasked to implement sustainable practices, reduce carbon footprints and enhance energy efficiency in commercial properties. This is driven by both client goals and legislative requirements. Solutions to meet these standards not only contribute to environmental conservation but also enhance the marketability of the properties. Bannon in partnership with sister company Evia has developed and implemented numerous complicated and effective ESG projects on behalf of clients to effectively deliver on these tasks in 2024.
Technological Integration:
The rapid advancement of technology is transforming the way commercial properties are managed. Property managers are faced with the challenge of integrating smart building technologies, data analytics, and automation systems to optimize operations. This will involve significant investments in upgrading existing infrastructure and training personnel to harness the full potential of these innovations. Bannon collates and interprets a huge amount of data in relation to assets under our management. This data and its interpretation offer significant insight to Bannon when recommending projects to clients for individual asset maintenance, management and performance.
Remote Work Impact:
The widespread adoption of remote work has altered the dynamics of commercial spaces. Property managers must respond to the changing demands for flexible office spaces, hybrid work models and the need for advanced digital infrastructure. Adapting commercial properties to meet the evolving needs of tenants in this new era of work will continue to be a crucial aspect of property management in 2024.
Rising Operating Costs:
Escalating operational expenses, including property maintenance, utilities and insurance, pose a significant challenge for property managers. Balancing the need to keep costs in check while delivering high-quality services to tenants requires strategic financial management. Bannon is acutely aware of the impact high operating costs have on the attractiveness of assets from both an owners and occupiers’ perspectives. Cost management underpinned by value for money remains a key cornerstone of Bannon property management ethos.
Tenant Retention and Experience:
With a competitive commercial property market, tenant retention is crucial for property managers. Providing a positive occupier experience, addressing concerns promptly, and fostering a sense of community within commercial spaces are vital to retaining occupiers and attracting new ones.
Commercial property managers continue to navigate a complex landscape. Successfully addressing the issues highlighted requires a proactive approach, strategic planning and a willingness to embrace innovation. As the real estate industry continues to evolve, property managers who can adeptly navigate these challenges will be well-positioned for success in 2024 and beyond. The Bannon property management has a proven track record in embracing and implementing best in class approaches. A certainty for 2024 is that this will remain the case.
Author: William Lambe, Divisional Director, Bannon
Date: 24th January 2024
Dublin office market take-up reached 1,441,000 Sq.ft. for 2023. This take-up figure represents a 45% decrease on 2022 and a 56% decrease on Q3 2019 (pre-covid). Despite this however, the number of transactions remained steady with 202 transactions completing in 2023, compared to 219 in 2022 and 204 deals completing in 2019.
Smaller office space continues to dominate the market with 62% of transactions falling in the < 5,000sq.ft. range. The average deal size for the year reached 7,134.1 sq.ft. (-41% on 2022). There is currently 751,456 sq.ft. of space currently reserved in the capital across 77 transactions.
Our first land sale of 2024 has just completed! We wish the purchasers all the best with the future development and look forward to seeing this scheme of 19 apartments being delivered.
Thanks to Robert Nowlan of RW Nowlan & Associates and Ruairí O’Donnell & Shane Sweeney of McCann FitzGerald LLP for their input and assistance in getting this sale across the line.
2023 was very much “annus horribilis” in terms of capital market’s activity. Concluding with a total turnover of €1.85 billion it represents the lowest level of activity since 2012. Clearly the pricing uncertainty brought about by the ending of the free money era, driven by a multitude of geopolitical and economic factors, has had the biggest effect.
See our latest Capital Markets report with analysis of both the past quarter and the year as a whole plus insight from our Capital Markets Director Roderick Nowlan.
To view the full report, please click here.
Excited to share a recent success story from the Bannon Property Management team. Our client’s decision to bring Snap Fitness, a 24/7 gym, to Drogheda Retail Park which is now officially open!
A great new addition to the retail park right before Christmas!
