To view the full report, please click here.
Among the recently announced package of fiscal measures introduced by the Government as part of Budget 2024 was a 12-month deferral of the Residential Zoned Land Tax (RZLT). The tax liability, which was due to be paid by landowners as and from 1st February 2024, will not now fall due until February 2025. The RZLT equates to an annual liability equal to 3% of the market value of land which is deemed suitable for residential development.
While the 12-month deferral will no doubt be a welcome development by liable landowners they will face a choice as to the future prospects for their property. Among others, the Bannon Development Land Team has identified three fundamental options open to impacted landowners:
1. Dispose of the land
2. Seek a re-zoning of the land via the Local Authority
3. Undertake residential development.
Under the third option, the RZLT liability will only cease to accrue when completed residential units are delivered and will continue to be incurred during the construction phase.
While the option to seek a re-zoning from residential uses will ultimately result in the tax liability being removed it will also result in a significant diminution in the value of the land. This may not be such an issue for certain owners such as farmers whose primary interest is working the land. However, the vast majority of landowners may be very reluctant to actively seek to diminish the value of their property via rezoning.
Whatever the ultimate course of action it is clear that a lot of important decisions will need to be made by landowners impacted by RZLT in 2024. If this impacts you, talk to the team today to start planning your strategy early.
Author: Niall Brereton, Director, Bannon
Date: 14th November 2023
Huge congratulations to Ian Hunter and the team in Swords Pavilions Shopping Centre on their win at the Pakman Awards. The team are now officially industry leading! The first shopping centre to win this award and a reflection of all the hard work in the centre.
**Exciting opportunity in the heart of the innovative Windmill Quarter in Dublin’s South Docks.**
We are pleased to present the final ground floor suite (front) of 50 City Quay, Dublin 2. Offering a superb waterside location suitable for both office and retail uses, extending to 692 Sq.ft.
Contact Lucy Connolly or Julia Halpenny to schedule an inspection and learn more about this exceptional space.
Sligo’s Quayside Shopping Centre has once again earned the prestigious title of All-Ireland All-Star Shopping Centre of the Year, bestowed by the All-Ireland Business Foundation. This marks the fifth Business All-Star recognition for this esteemed retail destination.
As it enters its 18th year in business, Quayside Shopping Centre stands out for consistently upholding the highest standards of trust, commitment, performance, and customer centricity.
Located at the heart of Sligo Town, Quayside Shopping Centre boasts 400 customer parking spaces and an expansive 130,000 square feet of retail space across four trading levels. The centre encompasses 43 Retail Units, 12 Office Suites and 89 Residential units in total.
Distinguished by its unique combination of open streets and covered malls, Quayside Shopping Centre is meticulously designed to cater to the needs of contemporary retailers while ensuring that customers enjoy a relaxed, secure, and convenient shopping experience.
This All-Ireland All-Star Shopping Centre of the Year accolade elevates the company into an exclusive league of businesses that have achieved a remarkable five-time Business All-Star recognition.
Announcing the news of Quayside Shopping Centre’s achievement, Deputy Chair of AIBF’s Adjudication Board, Kieran Ring, said:
On behalf of the All-Ireland Business Foundation I am delighted to announce that Quayside Shopping Centre have achieved All-Ireland All-Star Shopping Centre 2023-2024. This accreditation is in recognition of the company’s outstanding contribution to quality and standards in the sector over the last 5 years. This accreditation recognises Quayside Shopping Centre’s conduct in the areas of trust, commitment, performance & customer centricity. Quayside Shopping Centre is hereby included in the AIBF Register Of Irish Business Excellence for the fifth consecutive year.
Reacting to the news of her company’s achievement, Quayside Shopping Centre Manager & Head of Marketing, Christine Dolan said:
‘On behalf of everyone working at Quayside Shopping Centre in Sligo, I would like to express our sincere gratitude and delight at being named as All-Ireland All-Star Shopping Centre of the Year for 2023/2024 including receiving Business All-Star accreditation for the fifth consecutive year. We are absolutely thrilled to hear that our centre has once again achieved such a prestigious title. This remarkable accomplishment is a testament to the dedication and tireless efforts of our exceptional team of retailers and staff who work here. We couldn’t be prouder of their commitment to upholding the rigorous standards set by the All-Ireland Business Foundation.
As an integral part of the vibrant community in Sligo, we take our role seriously and are committed to going the extra mile for our customers. While this accolade recognises our efforts, we want to emphasise that much of the work happens behind the scenes.
We are dedicated to continually improving the centre’s services and facilities, ensuring that each visit to Quayside is a remarkable experience. This recognition further inspires us to continue providing a top-tier shopping experience for our valued customers.’
Managing Director of the All-Ireland Business Foundation Kapil Khanna said: The accreditation, which is now held by over 650 firms, is needed by the thousands of small and medium businesses which operate to their own standards but have nothing to measure them by.
He said: We evaluate a company’s background, trustworthiness and performance, and we speak to customers, employees and vendors. We also anonymously approach the company as a customer and report back on the experience. The business goes through at least two interviews and is scored on every part of the process against set metrics.
About The All-Ireland Business Foundation
The All-Ireland Business Foundation is an autonomous national accreditation body tasked with enterprise development and the promotion of Best-in-Class Irish businesses.
As the accreditation body for the Business All-Star mark, the AIBF recognises Best-In-Class Irish businesses. Companies that merit recognition based on an independent audit of their performance, reputation, and customer-centricity.
Article Published by All Ireland Business Times
In this publication our leasing team summarise some of the more significant recent transactions and Neil Bannon focuses on footfall levels on our two most prominent high streets, namely Grafton Street and Henry Street, where current activity has proved very much contrary to previously predicted bad news speculation.
To view the full report, please click here.
In early September I had the privilege of joining Bannon as a Graduate Surveyor. Having completed my internship in Bannon in third and fourth year as part of my Property Economics degree I was already familiar with the office setting and the familiar faces. The positive and friendly atmosphere made this transition seamless. Starting any job can be daunting but I have felt that in Bannon they have been very supportive in every way to help me settle into professional life.
I joined the Capital Markets and Office teams working alongside Rod Nowlan, Lucy Connolly and Julia Halpenny. Having previously worked in this area during my internship I was aware of the fast-paced industry of the investment world. From shopping centres to Georgian offices, I was well exposed to the different avenues of the property industry as well as gaining invaluable experience from my colleagues. It was very satisfying applying theory to practise moving from college to the working world as well as meeting new faces along the way and learning from their past experience.
Throughout my final year of college, I was always supported by my colleagues in Bannon who helped me throughout the year with advice for my thesis and various projects, their support was very reassuring in what proved to be a very stressful academic year. This help has been very much continued as I move into the next stage of my career as I have been assured that if I need anything, they are always there to guide me.
The positive culture in Bannon as well as the friendly and intelligent professionals that work here have definitely played a part in developing my growing knowledge of the property industry as well as helping build my character as a person. I am very grateful to Bannon for the opportunity and I look forward to continuing to work with the great Bannon team!
Author: Brian Morton, Graduate Surveyor, Bannon
Date: 17th October 2023
The Bannon team had a wonderful time at the 2023 Nexus Masquerade-themed Ball on Saturday evening held by the SCSI – Society of Chartered Surveyors Ireland in the Morrison Hotel, Dublin.
A great night of networking with fellow future leaders of the property industry and we are looking forward to the next one!
The Government aims to have 80% of Irish electricity come from renewable energy. As part of Budget 2024 a €380 million fund has been announced to help households with the green transition and reduce greenhouse gas emissions and energy bills. The doubling of the tax disregard in respect of personal income received by households who sell residual electricity from micro-generation back to the national grid will also promote the greening of the housing stock nationwide.
Bannon is proud influencing the greening of the Irish Commercial Real Estate Sector through the procurement 100% Green Renewable Energy across their Property Management Portfolio. In addition to this, Bannon works closely with our partner Evia – Sustainable Real Estate to implement green initiatives to reduce the carbon and improve the sustainability initiatives of commercial real estate assets across Ireland.
It is crucial to prioritise and establish a comprehensive water conservation strategy for any asset. Some factors to consider include:
The primary water conservation objective of an asset is to conserve a natural commodity. It is based on efficiencies like reduced flows, leak detection and the introduction of rainwater harvesting systems for non-potable use (e.g., toilets, general cleaning). Conserving water reduces the need for costly infrastructure expansion and maintenance, providing a positive impact on the environment and service charges.
Once you have developed and integrated water conservation, there is a secondary sustainable measure that can explored.
When we think about sustainability measures, several projects typically come to mind. Solar PV Panels, EV Charging Stations, LED Lighting, Rainwater Harvesting – the list goes on. Asset Managed Water Wells are one of the least utilised sustainability initiatives explored in Ireland. What a missed opportunity given the wet summer we just experienced!
Asset Managed Water Wells are renewable sources that have the potential to provide water to common area facilities such as toilets and tap water (not for consumption) in public spaces. Take shopping centres for example. There are a small number of shopping centres in Ireland that have implemented Asset Managed Water Wells, but why are more centres not doing the same? One barrier is that the drilling process on-site is not a simple option. The site must meet many conditions and most importantly, the drilling must find a water source.
Exploring the eligibility of your site is worthwhile. In line with a decision by the Commission for Regulation of Utilities (CRU) on non-domestic tariffs, a new set of national water and wastewater business charges came into effect on the 1st of October 2021. There has been no change to charges since 2014. Historically, customers would have paid charges based on their local authority. The newer system introduced four bands based on the level of usage. Having an Asset Managed Water Well on site would remove the need for public water which in turn would reduce water rates.
A well-developed and integrated strategy can be used in line with public water systems. This is a visionary objective that should be embraced to protect the long-term vulnerability of this natural resource. From a commercial perspective, the savings are significant.
Be a visionary! Talk to Evia Sustainable Real Estate or Bannon Property Management team in advance of your next budget year to discuss potential savings and projected payback.
Author: Aoife McGovern, Surveyor, Bannon
Date: 13th October 2023
The Bannon Property Management Team are delighted to attend today’s SCSI PMFM Conference which is being held at Windmill Lane. A great opportunity to hear about market trends and meet with professionals from across the property industry.
Budget 2024 announced the establishment of a new Infrastructure, Climate, and Nature Fund, which will grow by €2 billion for seven consecutive years, reaching €14 billion. The purpose of this fund is to ensure there is no reduction in capital investment if the economy goes into a downturn. It will be run on a more short-term basis than the Future Ireland Fund. Up to 22.5% of the fund can be used for climate and nature-related capital projects in any year from 2026 up to a cumulative maximum of €3.15 billion.
The fund can also be tapped for general investment in infrastructure, which will take precedence during a downturn. 25% of the fund can be used in a year when there is a significant deterioration in the public finances. The fund will be managed by the National Treasury Management Agency.
While the Charlemont area in Dublin city centre has seen a significant number of new office developments over recent years with schemes such as Charlemont Square, Charlemont Exchange and Park Place all adding to its capacity as a key location for major employers, the delivery of new residential accommodation there has been subdued in comparison.
The combination of that particular imbalance and the ongoing delays being experienced in the planning system makes the sale of Charlemont Quarter – a rare greenfield plot with full planning permission for 19 apartments – all the more interesting. Located immediately next to the Luas Green Line and at the junction of Peter Place and Adelaide Road, the Charlemont Quarter site is being offered for sale by agent Bannon at a guide price of €1.8 million.
The subject property is primed for development, having secured approval from An Bord Pleanála in May of this year for the construction of 19 apartments, a mix of three studio units, 10 one-bed units and six two-bed units. Notwithstanding this permitted scheme, Reddy Architecture has prepared plans for a larger 24-unit development which prospective purchasers may opt to pursue at their discretion.
Notably, the proposed building does not include a basement level, while prospective purchasers may also avail of the Government’s time-limited waiver in respect of local-authority development contributions (subject to meeting certain qualifying criteria). In addition, the scale of the site will exempt the owner from the requirement to provide Part V units to Dublin City Council. The combination of these three factors should enable the purchaser to achieve significant cost savings and increase profitability, according to Niall Brereton, who is handling the sale on behalf of Bannon.
He says: “Charlemont Quarter is likely to attract strong interest from developers, contractors and approved housing bodies, given that it’s effectively a shovel-ready project. Opportunities to deliver a new residential scheme in such a centrally located area are particularly rare.”
Article published by The Irish Times
As investors, owners and occupiers are conscious of the environmental performance of their buildings, questions have been raised about the future of Georgian office space. Will these buildings become obsolete?
There is still a market for Georgian office space, however, that market has changed. A noticeable shift that the Bannon Office team is seeing in the letting patterns of Georgian office spaces is a departure from the conventional practice of leasing entire buildings to a more dynamic and adaptable approach of floor-by-floor rentals. This change reflects a growing recognition of the versatility and scalability that these historic properties offer. Businesses now have the flexibility to lease only the space they require, allowing for more tailored solutions to suit their specific needs. This trend is not only a reflection of the evolving preferences of tenants but also a testament to the adaptability of Georgian office spaces, which can seamlessly accommodate a variety of businesses in this modern age of flexible workspaces.
The notable shift toward floor-by-floor rentals in Georgian office spaces can be largely attributed to the increasing demand among companies to be located on a single, unified floor plate. While Georgian buildings exude historical charm and elegance, their architectural layouts often prove less suitable for larger businesses seeking consolidated office spaces. However, this transition aligns perfectly with the needs of smaller businesses and startups that value the intimacy and functionality of smaller floor plates. For these companies, Georgian office spaces are emerging as ideal options, offering the perfect blend of history, character, and practicality that caters to their specific spatial requirements, ultimately making them a sought-after choice in the ever-evolving landscape of modern office leasing.
This trend in the Georgian office market represents a compelling opportunity for small businesses to reclaim a central presence in the heart of the city. Georgian offices, with their affordable pricing ranging from €30-€45 per square foot, depending on quality, size, specifications, and location, offer an attractive alternative to the considerably more expensive €60-€65 per square foot rates associated with modern buildings.
Small businesses recognise the essential value of a city centre “hub” to conduct their operations effectively. This affordability enables them to thrive in prime city centre locations, fostering collaboration and networking while contributing to the revival of vibrant business communities in the heart of the city.
Author: Julia Halpenny, Surveyor, Bannon
Date: 9th October 2023
There were two key takeaways from this quarter’s Capital Markets figures. First and foremost, for the first time in almost a decade there were no material PRS transactions. The second was that two purchasers, specifically Davys and French Fund Corum, accounted for almost 50% of the entire quarter’s market turnover with the acquisition of 10 separate assets.
To view the full report, please click here.
We are into Q4 and our retail based trackers continue to show improving trends year on year. In our latest Pulse, Neil Bannon considers the question – What does inflation mean for retail rents?
To view the full report, please click here.
Dublin office market take-up reached 354,000 Sq.ft. for the third quarter of the year, bringing the year to date total to just under 1,100,000 Sq.ft. This take up figure represents a 20% decrease on Q2 2023, a 56% decrease on Q3 2022 and a 1.5% decrease on Q3 2019 (pre-covid).
Q3 is traditionally the most subdued quarter following the summer break, however, transactions have remained steady with 54 deals recorded, resulting in an average deal size of 6,500 Sq.ft. (-15% on Q2 2023). There is currently 717,000 Sq.ft. reserved across 75 transactions.
Neil Bannon and Roderick Nowlan are back at the international trade fair EXPO REAL (Messe München) connecting with experts, clients and friends in the real estate industry.
We look forward to seeing you there🤝
As technological advancements continue to reshape industries across the globe, discussions surrounding the potential impact of artificial intelligence (AI) on various property sector roles have become common. In the Bannon realm of commercial property management, suggestions have been made that human property managers could be made redundant considering AI’s capabilities. Following deeper analysis, Bannon believes that AI is not poised to make commercial property managers redundant but to augment the role and enhance efficiencies.
To paraphrase Mark Twain, the reports of the death of property managers have been greatly exaggerated! We have identified seven key reasons why we think AI will not replace humans in the sector.
The belief that AI will be making commercial property managers redundant is based on a misunderstanding of the nuanced, multifaceted nature of property management. By embracing technology as a tool rather than a replacement, commercial property managers can leverage AI to elevate their roles and provide even greater value to property owners and occupiers alike.
The Bannon Property Management team has been utilising AI for several years to collate and interpret the many data points property managers collect. This has ensured that data is presented in a clear and concise manner to our clients leading to more informed decisions and strategies for the assets we manage. Bannon has embraced AI to ensure we continue to provide best-in-class services to our clients.
Author: William Lambe, Divisional Director, Bannon
Date: 2nd October 2023
Many thanks to Brian Leavy and the team in Thorntons Recycling for hosting some of the Bannon Property Management Team yesterday.
The Bannon team were given a tour of the Thorntons Recycling MDR (Mixed Dry Recycling) and SRF (Solid Recovery Fuel) facilities in Ballyfermot.
Thorntons Recycling operate on a zero to landfill basis which is in line with the Bannon sustainability aims and ethos. It was great for the Bannon team to see first hand, the process of how zero to landfill is being achieved.
After two years at the helm of Property Picnic, and with more than €300,000 in donations raised from across the property industry for the benefit of Cancer Trials Ireland, the team at Bannon is to pass the torch to Colliers.
The now-annual event, which was started two years ago by Rod Nowlan and Lucy Connolly in memory of their late colleague, Louise Creevy (née Doherty), will be spearheaded in May 2024 by Michele McGarry and Caitríona Kirrane at Colliers. It will once again be hosted in Hibernia’s Windmill Lane event space, which caters for more than 650 guests. All events to date have been sold out well in advance.
Commenting on her hopes for next year’s fundraiser, McGarry said: “We at Colliers are really looking forward to taking over this important event and hope to build on the work done by the Bannon team to deliver another fun night for the industry, and most importantly raise funds for this excellent cause.”
Eibhlin Mulroe, chief executive of Cancer Trials Ireland, said: “We are overwhelmed at the love and loyalty of the Bannon group to their dear colleague, Louise Creevy. They have carried on her advocacy for clinical trials through their amazing Property Picnic. We are absolutely delighted that Colliers have decided to take up the mantle, and we are very grateful to Michele and the team.
Last year the funds raised by the property industry via Property Picnic went towards four investigator-led (doctor-led) cancer trials. These trials allow cancer patients in Ireland to avail of cutting-edge treatment that they could not otherwise have accessed, and at no cost to themselves or the State.
Article published by The Irish Times
The Bannon Retail Team at Completely Retail Marketplace today, meeting retailers and showcasing the positive story around the Irish Retail Market. Darren Peavoy, Jennifer Mulholland and Daniel Murphy
September is always an important month in Bannon as we welcome our new full-time graduates. A very warm welcome to Stephen Keegan, Mark Hayden, Brian Morton, Alison O’Gorman and Dwane Martin.
Bannon Managing Director Paul Doyle commented: “All of this years’ graduates have worked with us previously through their internships. They are now back full-time and spread across the business. We wish Stephen, Mark, Brian, Ali and Dwane every success in their property careers and are thrilled to have them as part of the growing team at Bannon. We are very fortunate to have such an enthusiastic group join us this year. Each one of them is an absolute pleasure to work with and we are excited by the energy and skills they will bring to Bannon”.
Bringing our two-year term to an end, Bannon is delighted to hand over a cheque for €130,279 to Eibhlin Mulroe for this year’s Property Picnic in aid of Cancer Trials Ireland. This brings the total for our two year stint to over €300,000. A big thanks to the Keystone Sponsors and the wider property industry for their support. We also appreciate the support of the family and friends of our old colleague and the inspiration for Property Picnic; Louise Creevy (nee Doherty).
Formal announcement of the firm to take over the running of Property Picnic 2024 to hit the press next week. We wish them all the best for the 2024 event and thank them for taking on the mantle for this very important event.
Red Rock Developments Ireland, Core Capital Limited, Hibernia Real Estate Group Ltd, Glass Bottle, Mastertech Group, Matheson LLP, MCR Group, PrepayPower, Lioncor, Ronan Group Real Estate, Eagle Street Partners, Dublin Airport Central, McGrath Group, SCSI – Society of Chartered Surveyors Ireland, Bidvest Noonan
The European Union has taken a significant step towards promoting sustainability by introducing the EU Taxonomy Regulation. This ground-breaking initiative aims to provide a standardized framework for identifying environmentally sustainable economic activities. This article explores the EU Taxonomy, its significance, and the implications it holds for businesses and investors.
What is the EU Taxonomy?
The EU Taxonomy is a system that categorizes environmentally sustainable economic activities, offering clear and consistent guidance for sustainable investments. It helps investors and businesses align their financial choices with environmental goals and encompasses various sectors like energy, real estate, and agriculture.
Key Components of the EU Taxonomy
The Taxonomy focuses on six environmental objectives:
Each objective is accompanied by specific criteria that economic activities must meet to be classified as environmentally sustainable.
One of the core principles of the EU Taxonomy is the Do No Significant Harm principle, which ensures that an economic activity must not cause significant harm to any of the environmental objectives. This means that businesses seeking to be classified as environmentally sustainable must meet stringent criteria to avoid adverse impacts on the environment
Companies are required to disclose the extent to which their activities align with the Taxonomy’s criteria in their financial reporting. This transparency allows investors to make informed decisions about their investments based on environmental considerations.
Significance for Businesses:
Businesses that follow the EU Taxonomy can tap into a growing pool of sustainable finance opportunities, like green bonds and loans that are gaining popularity with investors. Compliance with the Taxonomy can help businesses secure funding from these sources. Moreover, adhering to Taxonomy standards showcases a commitment to environmental sustainability, boosting their reputation and attracting socially responsible investors and customers. It also helps businesses identify and minimize environmental risks, reducing their exposure to regulatory and operational challenges in a world that places a high value on sustainability.
Significance for Investors
Investors can make smarter choices by checking a company’s sustainability disclosures through the Taxonomy. This allows them to match their portfolios with their environmental, social, and governance objectives. Investing in Taxonomy-compliant companies can lower the risk tied to environmental issues and changing regulations. It also helps investors steer clear of investments that might become obsolete as the world moves toward a greener economy.
The EU Taxonomy is a crucial step in promoting environmental sustainability in finance and real estate. It offers a consistent way to identify eco-friendly activities, benefiting businesses and investors. As sustainability becomes more important, the Taxonomy will play a key role in changing how we invest and allocate capital, ultimately helping the environment. Using this framework can bring financial benefits and help create a more sustainable and resilient future for everyone.
Author: Cillian O’Reilly, Surveyor, Sustainability Manager, Bannon
Date: 14th September 2023
In the ever-evolving landscape of commercial real estate, sustainability is a paramount consideration. As we strive to reduce our carbon footprint and address climate change, understanding and managing greenhouse gas emissions is crucial for the industry’s future. In this article, we’ll explore how Scope 1, 2, and 3 emissions apply specifically to the commercial real estate sector and why they should be at the forefront of our strategies.
Scope 1 Emissions: The Building Blocks
Scope 1 emissions in commercial real estate pertain to direct greenhouse gas emissions resulting from sources owned or controlled by a property owner or occupier. These emissions are produced within the boundaries of the property and are directly tied to its operations. Common examples include emissions from on-site heating, cooling, and electricity generation systems, as well as emissions from owned or leased vehicles used for property maintenance and management. For the commercial real estate sector, tackling Scope 1 emissions can involve upgrading building systems for greater efficiency, transitioning to renewable energy sources, and implementing eco-friendly transportation options for maintenance and management teams. Reducing Scope 1 emissions demonstrates a commitment to environmental stewardship and can improve the marketability of properties.
Scope 2 Emissions: The Energy Equation
Scope 2 emissions are indirect emissions associated with the generation of purchased electricity, heat, or steam consumed by a commercial property. These emissions are linked to energy sources outside the property boundaries, such as the local power grid. In the real estate context, Scope 2 emissions mainly comprise the carbon intensity of the electricity used to power the building and its operations. To address Scope 2 emissions, property owners and occupiers can consider procuring green energy or renewable energy certificates. Transitioning to cleaner energy sources not only reduces the carbon footprint of a property but can also enhance its appeal to environmentally conscious tenants.
Scope 3 Emissions: The Ripple Effect
Scope 3 emissions are the broadest and often the most challenging to quantify in commercial real estate. These encompass all other indirect emissions along the value chain of the property but outside the control of the owner or occupier. For the commercial real estate sector, Scope 3 emissions can include emissions associated activities such as commuting and business travel, as well as emissions embedded in the products and services used in the building. Addressing Scope 3 emissions requires collaboration between property owners, occupiers, and suppliers. Encouraging sustainable commuting options, supporting telecommuting, and sourcing eco-friendly products and services within the building can make a significant impact on reducing the overall carbon footprint.
In summary, understanding and managing Scope 1, 2, and 3 emissions are pivotal for the future of commercial real estate. These three scopes provide a holistic view of your environmental impact, from the direct emissions under your control to the broader, indirect emissions associated with your operations. It’s not only about reducing environmental impact but also about meeting the increasing demand for sustainable and eco-conscious properties. By embracing green building practices, optimizing energy usage, and engaging in sustainable supply chain management, the commercial real estate sector can lead the way toward a more environmentally responsible and resilient future.
Author: Cillian O’Reilly, Surveyor, Sustainability Manager, Bannon
Date: 13th September 2023
As we begin World Green Building Week, Bannon is proud to launch its 2022 ESG Report. Through numerous initiatives, Bannon far exceeded its ESG goals, achieving a carbon footprint reduction of 34%. Bannon looks forward to working with Owners, Occupiers and all interested parties in the real estate sector to curate a more sustainable future.
To view the full report, please click here.
Bannon was delighted to be appointed as property management and leasing agents for Harbour Place Shopping Centre in Mullingar earlier this year. Based in the heart of the Midlands, Harbour Place Shopping Centre holds special significance with many Bannon team members who are from the Mullingar area.
The Centre played a key role in welcoming over 600,000 people to the Fleadh Cheoil na hÉireann in August. The influx of visitors enjoyed access to a variety of retail outlets, restaurants and parking, all housed in the well-maintained Centre. Harbour Place Shopping Centre and Bannon were happy to support this wonderful event.
We look forward to continuing to work closely with the owners and centre management team to build on the shopping centre’s already strong presence within the community.
Our latest Pulse highlights a number of developments bringing new space to the market for the first time in over a decade and the opportunity for European retailers in the Irish market.
To view the full report, please click here.
Sustainability is a defining issue in the modern world. Its importance reaches across various sectors, including commercial property management. For the Bannon Property Management team, the prioritisation of sustainability in its approach to managing commercial properties is not just a choice, but a necessity.
One of the most pressing reasons for prioritising sustainability is the urgent need to address environmental challenges. Ireland, like the rest of the world, is grappling with the consequences of climate change, resource depletion, and biodiversity loss. Commercial properties are known to consume significant amounts of energy and resources. By embracing sustainable property management practices, such as energy-efficient technologies, waste reduction, and sustainable landscaping, Bannon property managers have significantly reduced the carbon footprint of the assets we manage. Our approach aligns with our clients’ sustainability commitments and serves as a model for responsible resource utilisation and environmental stewardship.
Economic resilience is another key component for prioritising sustainability in commercial property management. In an era of fluctuating energy costs, regulatory changes, and evolving consumer preferences, sustainable properties are better poised to navigate uncertainties. Energy-efficient buildings, for example, have lower operational costs due to reduced energy consumption. Over time, these cost savings translate into tangible financial benefits for property owners and occupiers. Additionally, sustainable properties are likely to attract a growing segment of environmentally conscious occupiers and investors who prioritise properties that align with their values. This increased demand can lead to higher occupancy rates, longer lease durations, and enhanced property values, bolstering the economic viability of sustainable property management.
Sustainability in commercial property management is closely intertwined with broader societal trends and global expectations. The rise of environmental, social, and governance (ESG) considerations has reshaped investor and occupier preferences. Increasingly, investors are factoring in sustainability metrics when evaluating real estate opportunities, and occupiers are seeking spaces that align with their values and contribute to their well-being.
It is often said the S (Social) in ESG is the hardest to measure. The social dimension of sustainability reinforces its significance in commercial property management approaches. A sustainable property is more than just an energy-efficient structure; it’s a place that fosters human well-being and enhances the quality of life for occupants. Green buildings are associated with improved indoor air quality, ample natural light, and thoughtful design that promotes occupant comfort and productivity. Employees working in such environments are likely to experience better health, higher job satisfaction, and increased productivity.
By embracing sustainability, property managers not only tap into a growing market but also enhance their reputations as ethical and forward-thinking industry leaders. It would be remiss, however, not to acknowledge the challenges that accompany the integration of sustainability into commercial property management.
Initial investments in sustainable technologies and building upgrades can be daunting, especially for older properties that require retrofitting. Property managers must navigate financial considerations while also demonstrating the long-term benefits of these investments, including energy savings and enhanced property values. Collaborative efforts involving property managers, owners, financial institutions, and stakeholders are essential to encourage sustainable property development and management. Together with Bannon’s sister company, Evia, we offer tailored solutions to our clients. This enables Bannon to provide clients with an interdisciplinary service that offers both property management and technical solutions to sustainable practices.
Bannon has been at the forefront of implementing and actioning sustainable property management across our asset portfolio. This has ranged from the installation of PV panels for electricity generation, replacement of lights with energy-efficient alternatives, and putting in place online portals for building occupiers to ensuring that contractors we use in our assets are in line with our values regarding sustainability objectives.
Bannon has prioritised sustainability in our property management approach for a multitude of reasons. From mitigating environmental impact to enhancing economic resilience and promoting societal well-being, the benefits of sustainability are undeniable. By embracing sustainable practices, Bannon property managers help clients achieve environmental targets, position properties for long-term financial success and create spaces that promote occupant health and productivity. The alignment of sustainable property management practices with evolving market demands, and global expectations underscores the strategic importance of sustainability.
Author: William Lambe, Divisional Director, Bannon
Date: 4th September 2023
Sretaw PE (Private Equity), an investment and property development company headed up by Eamon Waters, has secured three new tenants for its newly-refurbished offices at 12 Duke Lane in Dublin’s Royal Hibernian Way. Theratechnologies, Dynamo, and AGF International Advisors Company Ltd have each agreed deals to occupy the property at rents ranging from €538 to €614 per sq m respectively.
Commenting on the agreement of the lettings at 12 Duke Lane, Lucy Connolly of Bannon, who represented the landlord, said: “Despite recent market commentary [on the office market] the level of inquiries we received was exceptional. It highlights the demand at present for small, modern, centrally-located floorplates. The rents achieved were at quoting levels and above.”
The new tenants at 12 Duke Lane were represented by David O’Malley of QRE, Shane Bourke of Irish Office Space and Emma Byrne of Finnegan Menton respectively.
Developed originally in the mid-1980s, 12 Duke Lane comprises 533sq m (5,737sq ft) of office accommodation over four floors and forms part of the wider Royal Hibernian Way scheme. The development, which is arguably best known as the location of the Davy Stockbrokers head office, extends to an overall area of 8,630sq m (92,888sq ft) and also includes around 1,950sq m (21,000sq ft) of retail and hospitality space.
The retail quarter is occupied by a number of well-known brands including Boylan’s Shoes, Carol Clarke Jewellers and Leonidas Chocolates, while the hospitality offering includes the Marco Pierre White steakhouse; Isabelle’s restaurant; and the Lemon & Duke bar, owned by Noel Anderson and his business partners, former rugby internationals Sean O’Brien, Jamie Heaslip and Rob and Dave Kearney.
Mr Waters acquired Royal Hibernian Way from Aviva Investors in 2021 for about €74 million. The agreement of the deal came just weeks after he and US private equity firm Blackstone secured the sale for €1.4 billion of Beauparc Utilities, which Mr Waters had founded, to Australian financial services giant Macquarie. The deal for the company which owns the Panda and Greenstar waste firms in Ireland is understood to have provided Mr Waters with a windfall of about €367 million, based on company filings prior to the announcement.
Article published by The Irish Times
We are very pleased to have recently completed the sale of this high-profile property at the junction of Callary Road and Foster’s Avenue in Mount Merrion. It offers excellent re-development potential in a sought-after residential address. We wish the new owners all the best with their future plans. Thanks to Eamonn Carney of Carney McCarthy Solicitors for a seamless conveyance!
Quarter 2 Dublin office take up exceeded 440,000 sq.ft. resulting in an increase in average deal size to 7,720 sq.ft. (24% increase on Q1 2023)
City Fringe and Suburban markets performed particularly well this quarter accounting for 60% of all take-up. Dublin continues to attract a diverse mix of industries with professional services, finance and state agencies the most active sectors this quarter with TMT accounting for just 6% of total take up, a decrease of 35% from the same quarter of 2022. We commence Q3 with over 665,000 sq.ft. of office space currently reserved.
See full details below together with expert insight from Lucy Connolly.
To view the full report, please click here.
Our latest monthly Retail Pulse has now gone live. In this publication our retail leasing team recap on activity at the half year point of the year. Separately in our “Expert Insight” section Neil Bannon looks at two differing perspectives relating to the performance of instore vs online retail. The devil is always in the detail!
To view the full report, please click here.
The development of infrastructural schemes of national importance has long been problematic. Inherently such schemes require the compulsory acquisition of multiple landholdings and as a result many road and light rail schemes have been beset with legal challenges resulting in delayed delivery and in some circumstances the complete abandonment of projects.
There have been numerous examples of schemes that have failed to materialise due to legal challenges which cast aside the merit of the scheme itself. These include the Galway City Outer Bypass which was granted approval by An Bord Pleanála in November 2008, however following a Judicial Review to the High Court and ultimately to the Court of Justice of the European Union (CJEU) the scheme was quashed in 2013. The latest iteration for a relief road around the City (N6 Galway City Ring Road) received approval from An Bord Pleanála in December 2021. Three sets of legal proceedings were taken challenging this decision. This resulted in the High Court remitting the scheme back to An Bord Pleanála for further consideration after the Bord was found to have failed to take into account the national Climate Action Plan. The scheme was then formally quashed by the High Court in early 2023.
The proposed Foynes to Limerick Road (incorporating a bypass of Adare) was approved by An Bord Pleanála in August 2022. It too was the subject of three sets of Judicial Review proceedings which resulted in the scheme being halted. It has recently been reported that those Judicial Review proceedings have been withdrawn however progress on the scheme has been delayed for the best part of a year.
The delivery of critical infrastructure which involve CPO powers should rightly be the subject of scrutiny, however, at present it appears that major infrastructural schemes are ‘open season’ for objectors whether they are directly impacted or not. If important infrastructural projects are to be delivered in a timely manner then our view is that the process of seeking consent to allow the scheme progress to construction requires material reform to ensure that the public good trumps individual objections.
Niall Brereton is Director of Professional Services at Bannon and advises Landowners in respect of Compulsory Purchase Orders across a range of infrastructural projects.
24th July 2023
The Bannon team took part in the Nexus 5-aside Tag Rugby Tournament held by the SCSI – Society of Chartered Surveyors Ireland yesterday evening and ended up being semi-finalists!
It was great to see so many companies across the industry battling it out.
We are already looking forward to the next game🏉
Iain McGann, Dwane Martin, Jamie Brindley, David Munro, Daniel Murphy, Roderick Nowlan, Emer Kelleher, Julia Halpenny, Edward Williams, George Colyer
Lily is showing her support to the Girls in Green at the FIFA Women’s World Cup today in Australia, the Bannon team wish you the very best of luck and have no doubt you will do us proud! 🏆🍀⚽
The second quarter proved to be a challenging period for the Irish capital markets sector, with a total value of only €333 million invested. This marks the weakest performing quarter (and half year at sub €1 billion) in the last six years.
This lacklustre landscape can be attributed to three key factors: the end of “free money” as interest rates rise and inflation runs rife, the post-Covid impact of remote and hybrid working on office space demand, and concerns surrounding necessary capital expenditures for ESG (environmental, social and governance) retrofitting amidst rising construction costs.
However, after years in purgatory, it is the retail sector that has emerged as the star performer this quarter, accounting for 38.7 per cent of turnover. Although this performance is partly supported by the downturn in other sectors, there is no doubt that a significant perception shift has occurred, particularly in the retail park segment.
Notably, six retail parks have traded this quarter alone amounting to approximately €116 million including Liffey Valley B&Q, City East, Blackwater, Carlow, Newbridge and Waterford.
The most high-profile of these, Liffey Valley B&Q, which traded to French fund Inter-Gestion REIM for €26.6m, has thrown off a particularly strong equivalent yield in the mid to late 5 per cent range for an asset with a lease that has less than four years to run. This process saw participants such as Realty, Corum and Iroko compete for the asset.
So, what has driven this remarkable change in fortunes?
The “newfound” popularity of the retail sector can be attributed to a slow but building appreciation for what have been long-standing dynamics in both the supply and demand side of the sector. These dynamics differ considerably from the UK and US markets, where Irish retail investor sentiment used to originate.
Unsurprisingly, that core of the demand has shifted to both domestic family offices and a more central European focus where an appreciation for the fundamentals has shown through.
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/RD72OWG6Z5BTFCE3SO7DUQKALI.jpg)
Since 2011, when the last new shopping centre was completed in Ireland, there has been minimal net additional retail supply. This stands in stark contrast to the substantial expansion witnessed in the office, residential, and industrial sectors.
However, during this period, the number of people employed in Ireland has surged by 37 per cent, retail sales volumes have increased by 38 per cent, and Irish households’ net worth has reached new heights. These are all factors which feed the fundamental sustainability of the retail sector.
When considering the cumulative impact of debt reduction, increased savings, and rising house prices, Irish households are wealthier than ever before, with a net worth surpassing €1 trillion for the first time.
This surpasses the 2007 peak level of €716 billion, which was actually exceeded in the final quarter of 2017. Furthermore, Ireland’s gross debt-to-household income ratio has transitioned from over 200 per cent of the European average in 2011 to being below that European average today.
Combining these fundamentals with the historical correlation between inflation and the growth of retail rents and values, the renewed interest in the sector becomes apparent.
As highlighted by the turnover statistics, retail parks, in particular offer a compelling proposition. They benefit disproportionately from household growth and have proven resilient during economic downturns and the challenges posed by Covid-19.
Additionally, their ability to meet ESG requirements through initiatives like PV panels, rainwater collection, and other environmental measures adds value and attracts investors including new entrants. Similar attributes for high-street properties and grocery-led necessity retail are likely to see further interest in these sectors.
We expect to see numerous quality high-street trades in the third quarter and generally as the environmental benefits of the “centralised-distribution model” reflected by retail warehouses, shopping centres and Ireland’s key high streets becomes apparent.
We are seeing a complete return to pre-Covid footfalls for most the of the regional and necessity-focused schemes with Dublin’s two high streets hitting pre-Covid weekly footfall levels again for the first time last month.
As a consequence, we expect the sector to continue to outperform for the coming quarters with no less than seven shopping centres amounting to over €100 million in value due to trade within the next few weeks.
Rod Nowlan is an executive director at Bannon and heads up its office and capital markets team
What a fantastic team building day out in Kilkenny with the Bannon team on Friday.
A huge thank you to our social committee for organising such a great event!
The retail sector in Ireland is preparing for the country’s new Deposit Return Scheme (DRS). Starting from February 1, 2024, consumers will be required to pay a small deposit (15c/25c) on plastic and aluminium beverage containers, which they can reclaim by returning the empty containers to designated collection points.
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.
Many of the collection points will be located in shopping centres. While the primary objective of this scheme is to reduce plastic waste and encourage recycling, shopping centres will experience notable impacts on their operations and customer behaviours. One immediate consequence of the DRS will be the need for shopping centres to accommodate the significant increase in the volume of recycling. To effectively handle this increase, shopping centres will need to assess their existing infrastructure and make necessary adjustments. Proper management and maintenance of these areas in collaboration with recycling partners will be crucial to ensure a smooth and streamlined process.
With just over six months remaining until the implementation of the DRS, the Bannon Property Management Team is observing larger retailers in the firm’s shopping centre portfolio making preparations for in-store returns. While these changes may require initial investments and adjustments, the implementation of the DRS is likely to bring about positive changes in consumer behaviour, including increased footfall. The introduction of the DRS creates an added incentive for consumers to visit shopping centres. This increased footfall can translate into higher customer traffic, benefiting not only the recycling depots but also other retailers within the shopping centre.
By embracing this transition, shopping centre owners can demonstrate their commitment to environmental responsibility, attract socially conscious customers, and contribute to a greener future.
With over 25% of Ireland’s shopping centres under Bannon’s management, the firm is highly focused on implementing best practices that promote sustainability and reduce environmental impact while enhancing the customer user experience. If you would like more information about the DRS or discuss implementing sustainable practices in your properties, contact the Bannon Property Management Team today.
Author: Alex Patterson, Director, Bannon
Date: 13th July 2023
The Government has been grappling with a housing shortage for several years. As the demand for housing continues to outstrip supply, creative solutions are needed to address this pressing issue.
One potential solution that is gaining traction is the conversion of office spaces to residential units. This has come to the fore over the last number of weeks as the Government faces unyielding pressure to tackle the accommodation shortfall. Minister for Housing Darragh O’Brien is reportedly considering making planning exemptions to rules which would apply to repurposing office space to housing.
In an article in The Irish Times on May 22nd, it was reported that the Minister has “lobbied his Cabinet colleagues Simon Coveney, the Minister for Enterprise, Trade and Employment, on the issue, seeking his support for a plan that would convert offices built during the recent construction boom but are now underutilised”. The question is, is it feasible to repurpose a recently constructed Dublin office building into residential use?
[ ‘I never imagined such places existed’: What’s it like living in a converted office block? ]
The assumption here is that there is an oversupply of recently built office accommodation in Dublin city centre, but that is simply not the case. Offices built in the boom are in the main environmental, social and governance compliant (ESG-compliant), sustainable buildings. As has been widely reported by many in the property industry, these are and will be the buildings that are in demand for office use. The location of these buildings further enhances their desirability for that use, as we are seeing increased demand for well-located city-centre office buildings due to the availability of employee amenities and unrivalled transport links.
Converting offices into residential units presents an opportunity to address this but there are challenges involved, and as we have seen from other countries, caution is advised for such projects
This movement in the market provides vacant possession to the owner to allow for redevelopment or refurbishment of these brown buildings into ESG-compliant offices or alternative uses. This is where the question of residential conversion is most relevant…residential conversion will be most practical where the office value is lowest and the conversion costs to residential use are more sensible than the cost of “greening” the building for office use. Ultimately, it is about sorting the “wheat from the chaff”.
[ Michael McDowell: Nobody is thinking about the aesthetics of our cities ]
Working with our sister company Evia Sustainability consultants, the Bannon office team is assessing the cost and practicality of bringing older buildings up to standard from a green perspective, and what that entails. If the maths don’t add up – that is, if the cost of greening an office asset exceeds the end value – then the owner is looking at a stranded building which is then a candidate for residential conversion.
Without a doubt, Dublin’s housing shortage necessitates innovative solutions. Converting offices into residential units presents an opportunity to address this but there are challenges involved, and as we have seen from other countries, caution is advised for such projects. Consideration must be given to zoning, building and planning guidelines and regulations. This consideration must relate to the practicality and ability to convert but also to the social factors, with access to amenities, transport, employment opportunities and social connections fundamental for the residents of the schemes and thus their successful transformation.
[ The Irish Times view on turning offices into homes: unlikely to provide a quick solution ]
Embracing this potential solution and implementing it correctly may hold the key to not only helping to solve a housing shortage but also providing options to owners of potentially obsolete office buildings.
Lucy Connolly is divisional director and head of offices at Bannon property consultants
Commercial property management is a dynamic and fast-paced environment. The presence of an estates management team is critical to ensure the smooth and efficient operation of a large portfolio of managed assets. Estates managers perform a wide range of roles across a portfolio and constantly face new challenges daily.
The primary responsibility of the Bannon Estates Management Team is to ensure the safety, security, and smooth operation of Bannon managed property assets. Regular and thorough site inspections serve multiple purposes in achieving objectives. These inspections identify potential safety hazards, ensure compliance with safety regulations, and maintain the overall integrity of the portfolio. By proactively managing safety across the portfolio, the team contributes to reducing accidents and incidents.
Accurate and timely reporting of accidents and incidents is crucial for effective property management. The Bannon Estates Management Team plays a vital role in facilitating such reporting, working closely with on-site centre management teams and contractors. By liaising with relevant stakeholders, such as An Garda Síochána, they contribute to combatting antisocial behaviour and maintaining a safe environment for occupiers and visitors to enjoy.
To ensure the highest quality of service delivery, the team also monitors cleaning standards, security performance, and health and safety audits of the properties. By regularly assessing these aspects, they can identify deficiencies and take appropriate corrective actions. This helps to maintain a pleasant user experience for occupiers and visitors while mitigating potential risks.
Monthly KPIs
The team sets monthly KPIs to track performance, identify areas for improvement, and recognize exceptional service delivery. Regular discussions on KPI results allow for continuous improvement and effective communication with line managers.
Planned Preventative Works
By implementing well-structured planned preventative maintenance programs, the team ensures that potential issues are addressed proactively, reducing the likelihood of unexpected failures, and minimising operational disruptions.
Crisis Management
Dealing with unforeseen events such as fires, floods, and anti-social behaviour requires efficient crisis management. The Bannon Estates Management Team plays a vital role in formulating and fine-tuning response plans, enabling prompt action to mitigate risks and minimise the impact on property stakeholders.
By conducting thorough site inspections, managing safety, maintaining standards, and overseeing crisis management, the estate management team contributes significantly to the success and reputation of the properties Bannon manages. With effective collaboration, strategic planning, and a proactive approach, the team creates a safe and pleasant user experience for occupiers, visitors, and the wider community.
Author: Stephen McCoy, Estates Manager, Bannon
Author: Kennan Daly, Graduate Surveyor, Bannon
Date: 7th July 2023
Following a subdued Q1, Dublin office take up for the second quarter of the year reached 440,000 sq.ft. across 57 transactions. This brings the year to date figure to 724,500 sq.ft. Whilst Q2 take up is 53% ahead of Q1 figures, it reflects a H1 decrease of 28% versus the same period last year.
Dublin continues to attract a diverse mix of industries with professional services, finance and State agencies the most active sectors this quarter with TMT lagging behind significantly, accounting for just 6% of total take-up.
This quarter proved to be a challenging period for the Irish Capital Markets sector, with a total value of only €333m. Q2 marks one of the worst performing quarters in the last six years. On a positive note, after years in purgatory, the retail sector has emerged as the star performer for the period, accounting for 38% of turnover. Although this quarter’s relative increase is partly supported by the downturn in other sectors, there is no doubt that a significant perception shift has occurred, particularly in the retail park segment where no less than six retail parks have traded this quarter alone amounting to approx. €116m.
To discuss this, please contact Roderick Nowlan, Alex Patterson, Cillian O’Reilly and George Colyer.
Bannon’s latest monthly Retail Pulse has now gone live.
In this publication we look at retail occupier activity on Henry Street & O’Connell Street and Neil Bannon discusses the juxtaposition of the vacancies created by Debenhams failure in Ireland and the UK.
To view the full report, please click here.
Irish Consumer confidence improved again in June reflecting a 10.4% y-o-y increase. Tentative signs that food and energy price inflation might have peaked seem to have encouraged a slight easing in concerns around household finances. The exceptionally good weather may have also boosted the mood of many consumers, but the modest monthly gain suggests financial clouds are still hanging heavily over many households and economic sunshine is still hazy for some.
The Bannon team participated in the SCSI 5-A Side Football Tournament on Friday evening.
Well done to all our colleagues and the SCSI – Society of Chartered Surveyors Ireland for organising a very enjoyable and well organised event!
We are already looking forward to the next one! ⚽
It was super exciting to see Rituals open at Athlone Towncentre on Saturday. A great brand to further strengthen the Tenant mix.
For remaining leasing opportunities please get in contact with Jennifer Mulholland or Lorcan Keenan or our joints agents Cushman & Wakefield.
A very enjoyable day for the Bannon Property Management team helping out ALONE at Willie Birmingham Place, Kilmainham.
ALONE is a fantastic national charity that enables older people to age at home and one which Bannon is delighted to support each year.
We are pleased to have negotiated a new long term lease with Lipstick Clothing in Nutgrove Shopping Centre. Lipstick first opened in Nutgrove in 1984, it’s wonderful to see a brand stand the test of time after 39 years showing both the strength of the Centre, the retailer and their partnership together.
For further leasing opportunities please get in contact with Jennifer Mulholland.
| Title | Price | Status | Type | Area | Purpose | Bedrooms | Bathrooms |
|---|