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:
climate change mitigation
climate change adaptation
sustainable use and protection of water and marine resources
transition to a circular economy
pollution prevention
control and protection of healthy ecosystems
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.
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.
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.
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.
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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.
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.
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.
https://bannon.ie/wp-content/uploads/./irish-times-3.jpg514917Bannon Webpage Adminhttps://bannon.ie/wp-content/uploads/bannon-logo-trans.pngBannon Webpage Admin2023-08-23 16:33:592023-08-23 16:34:11Sretaw secures three new tenants for offices at 12 Duke Lane
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!
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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.
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!
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
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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! 🏆🍀⚽
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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.
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
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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.
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?
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.
Where we do see an opportunity for such conversion is with older office buildings or so-called “brown buildings”. Occupier demand has shifted towards real estate that helps achieve ESG goals and policies, therefore there is an acceleration in demand for ESG-compliant office accommodation from many organisations.
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”.
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.
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
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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.
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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.
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.
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.
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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.
https://bannon.ie/wp-content/uploads/./NUTGROVE.jpg510599Bannon Webpage Adminhttps://bannon.ie/wp-content/uploads/bannon-logo-trans.pngBannon Webpage Admin2023-06-23 10:53:132023-06-23 10:53:33Lipstick Clothing now open at Nutgrove Shopping Centre
Amid reports of a post-Covid hollowing out of city centres like San Francisco, and to a lesser extent New York and Los Angeles, as retailers suffer the effects of working from home, Ireland’s recovery is gathering pace, and by most measures is now stronger than it was pre-pandemic.
But Ireland too has a high reliance on technology workers, who may also be adopting hybrid working practices, so why is the Irish market performing better than the US, the UK, and many other markets?
I asked retail expert Neil Bannon, Executive Chairman at Bannon, and the first reason is that the US, for example, has six times more retail space per capita, than Ireland.
“Just imagine that we had another six Dundrum Town Centres, Liffey Valley’s, Blanchardstown Town Centres and six times every other shop in Dublin, and that is the scale of the over-supply in America,” he said.
In Ireland there has been no new shopping centre built since 2010 and no new retail park developed since 2007.
While our construction of new homes has been too slow, it has recently hit record levels, and this too, is driving demand.
There are just over two million households in Ireland, he told me, and the Housing for All Plan aims to produce another 300,000 new homes by the end of the decade.
‘In Ireland there has been no new shopping centre built since 2010‘
But there seems to be consensus that we need 500,000 new homes, which represents one new home for every four existing homes, “a staggering increase”, he added.
The impact of this growth is already being seen on Ireland’s 73 retail parks, 20pc of which are managed by Bannon.
Retail parks are the conduit for the overwhelming majority of spending associated with housing, Mr Bannon said – for example couches, TVs, white goods and floor coverings – with 85pc of sales taking place in store, according to Central Statistics Office figures.
“If every house in Ireland spends €2,500 annually on household goods, that’s up to €12.5bn of spend. If 500,000 new homes are built, and the average cost of kitting them out is €25,000, that’s another €5bn of expenditure,” he said.
One result is that Ireland’s retail parks are largely at full occupancy and rents are rising.
“We had expected some fall-off from the post-Covid DIY boom, but in fact, footfall and spending levels are stronger than pre-pandemic,” Mr Bannon said.
‘Ireland’s retail parks are largely at full occupancy and rents are rising.’
The most valuable retail park units were always those few with an ‘open user’ planning consent, permitting, for example, fashion retailers and not one that is just restricted to bulky goods.
However, a shift in the market is that furniture retailers are now out-bidding even open user retailers as evidenced by a deal just signed at Liffey Valley Retail Park where Danish brand JYSK has taken a 10,000 sqft unit plus mezzanine at a rent of approximately €25 per sqft.
That is, Mr Bannon notes, “a 40pc higher rent than pre-Covid”.
JYSK have taken half a dozen 10,000-15,000 sqft units in Ireland and continues to expand.
Another expanding brand that is already operating on several retail parks is EZ Living Furniture which also recently rented a 10,000 sqft unit plus mezzanine at Liffey Valley Shopping Centre.
It is not just the Dublin area as Limerick One Shopping Park has also seen new outdoor clothing and equipment retailer Mountain Warehouse recently lease a 7,000 sqft unit at approximately €28 per sqft.
The theme for the year ahead is “competition for space among brands and rising rents”, Mr Bannon concluded.
https://bannon.ie/wp-content/uploads/./PL45787891Liffey-Valley-sh.jpg8531280Bannon Webpage Adminhttps://bannon.ie/wp-content/uploads/bannon-logo-trans.pngBannon Webpage Admin2023-06-22 16:45:062023-06-22 16:45:32Paul McNeive: Retail parks to benefit from new house builds across Ireland
Bannon are proud to bring the Griffeen Centre in Lucan, Dublin to the market for sale. This resilient neighbourhood centre comprises a strong mix of local services with a Centra (Musgraves Ltd.) anchor in the heart of a highly populated west Dublin suburb.
The effect hybrid working and ESG has, or will have, on office demand from office occupier, investor and owner standpoints cannot be considered in isolation. These influences must be considered within the wider office market ecosystem and how they operate in tandem to drive occupier decision making at lease event dates. The Covid Pandemic brought an instantaneous change to how we work whereas ESG requirements and regulations have been coming into the market at a steadier rate. While there is also uncertainty around the future of working models, that can be adapted and changed rapidly, there is no uncertainty about the increasingly important and dominant role ESG will play in the office sector. The ESG roll out will be slower and changes can be anticipated, however the ability to bring the stock to standard is a far more timely and resource intensive exercise.
Hybrid working for businesses will effectively assess how staff utilise office space as a resource to produce output. Ultimately it is the company who can decide how to implement their working models and the decisions will be led by the type of work carried out by the business, the need to attract and retain talent and the model that allows the business to grow and produce output efficiently. Both staff and workspace are a factor of production for a business and how the two are utilised against each other effectively to generate product should ultimately be the key focus of any commercial business. This should craft the post-pandemic workplace in the years ahead and this will likely differ industry by industry.
ESG considerations will continue to become more prominent drivers in the decision-making process for both occupiers, owners and investors. Currently, ESG in commercial real estate is very much lead by the private and financial markets, with factors such as corporate mandates and lender requirements influencing the demand for ESG grade space. It is envisaged that the regulatory environment (in an EU context) around occupation and investment will become more scrutinous and this will further drive the demand (and requirement) for ESG grade space in the future.
Occupiers will be looking into the impacts, whether they be positive of negative, that revised working models have on their ability to create an attractive and productive workspace as well as any ESG led requirements that are being implemented on a company specific or regulatory basis. The implementation of these will likely crystallise at either a lease break or expiry where spatial requirements can be most practically revised. Property owners will have to be cognisant of their occupiers’ requirements against key lease dates and how these correspond with asset management strategies to protect both the rental and market value of the building. Alternatively, investors must consider how to preserve or improve on an asset’s income at purchase or where opportunities may lie in bringing brown buildings into a green market.
Bannon have a suite of services available to assist CRE owners, occupiers and investors in strategic real estate decisions and ESG insights. Please feel free to reach out to discuss by emailing consultancy@bannon.ie.
Fantastic to see the new Vila store now open at Athlone Town Centre.
It was a pleasure to work with our clients Alanis Capital to deliver this letting.
Further exciting new additions in the coming weeks and months ahead.
https://bannon.ie/wp-content/uploads/./vila.jpg10071659Bannon Webpage Adminhttps://bannon.ie/wp-content/uploads/bannon-logo-trans.pngBannon Webpage Admin2023-06-15 15:07:162023-06-15 15:07:59Vila store now open at Athlone Town Centre
Bannon’s latest monthlyRetailPulsehas now gone live. In this publication Neil Bannon shares some insights on what impact significant new housing supply will have on the retail sector.
Environmental, Sustainable & Governance (ESG) requirements for buildings are becoming of increasing importance to both investors and occupiers for buildings. There is no doubt that ESG will become an increasingly prevalent element within the commercial real estate (CRE) landscape, becoming an important driver of asset value. This means current owners will be facing important considerations. How do you attract good quality occupiers, achieve strong rents and ensure a competitive market of buyers for your asset at exit. ESG-led objectives are becoming increasingly commonplace in investment and fund criteria for institutional real estate owners. As these owners are significant sources of capital in CRE markets a likely result will be a somewhat forced divestment from ‘brown’ assets (non-ESG compliant assets) and a channelling of capital towards ‘green’ (ESG compliant) assets.
The market is not balanced, green assets in Ireland are typically buildings constructed or extensively refurbished after the 2014 Building Regulations came into play. We estimate that the green market comprises less than 15% of Dublin’s office stock, with the majority of this space located in Dublin 2 and Sandyford, the prime office locations. With multiple players competing for a limited supply of stock and available capital being funnelled into this small sector an expectation is prices will be driven up by competitive bidding in both the investor and occupier markets. The net effect of these events will be an increase in asset value through growth income complimented by strong occupier covenants and yield compression.
By contrast, we expect a shift in the brown asset market. Company mandates or client requirements will oblige some occupiers to occupy green buildings, seeing the demand for brown space shrink and the market becoming increasingly oversupplied. The pressures resulting from falling demand and increased void costs, will create a lower rent environment. An exit of institutional grade investors will see the demand drop for these buildings with ESG rules preventing purchase. The remaining investors will have to consider the cost and value associated with bringing an asset into the green market. While the market for this in prime locations may be viable, there are greater challenges for suburban/out of centre locations where the end rental value that can be achieved may not support viability of refurbishment.
Rescuing these potentially stranded buildings represents an opportunity for investors and developers and Bannon working with our sustainability business Evia are available to provide technical insights to ESG building upgrades. Feel free to reach out to discuss.
The Irish consumer market continues to showcase its strength and resilience. According to the latest report by CSO unemployment has hit a record low of 3.8%, while weekly earnings have reached a new high of €923.48.
This remarkable achievement is even more significant when considering that seasonally adjusted unemployment is now 50% lower than its peak during the Covid pandemic two years ago. Furthermore, the Irish labour force has surpassed 2.7 million for the first time in recorded history, and average weekly earnings are 20% higher than pre-Covid levels. With such positive indicators, the outlook for the Irish retail market is incredibly promising.
https://bannon.ie/wp-content/uploads/unemployment.jpg643859Bannon Webpage Adminhttps://bannon.ie/wp-content/uploads/bannon-logo-trans.pngBannon Webpage Admin2023-06-02 15:46:592023-06-02 15:47:25Unemployment reaching a record low as weekly Earnings Soar
The Covid-19 Pandemic has led to a paradigm shift in the traditional approach to office-based work. Following the initial ‘work from home’ requirements during the Pandemic, many businesses have since adopted alternative working models away from the traditional ‘in the office at your desk’ to models such as shifting staff to full work from home, flexible working options and hybrid working models.
The widespread shift to more flexible and agile working models has moved the concept of ‘work’ from a physical place to an activity. The net effect of this does not mitigate the need for a physical office, rather it changes the role and function the office plays in the business and how the space is utilised to meet staff working habits and models and drive business goals. While the full effect of Covid-19 on working models is yet to be seen, the consensus of many businesses and organisations has been to adopt a form of hybrid working to give staff more flexibility and that this is required in order to maintain and attract talent.
Hybrid working models will not necessarily impact an office development’s occupational capacity, rather it allows the building to attract occupiers with larger workforces. For example, if a development with a capacity for 1,000 workers is occupied by a business that implements a 50/50 split between WFH and office, the scheme can, in theory support an occupier with a 2,000 strong workforce. In practice this may be less as businesses will require full attendance by teams at different times and we have already seen the TWT (Tuesday, Wednesday and Thursday) phenomenon at play as workers prefer to work from home on Mondays & Fridays. Despite this, the classic rule of thumb of allocating 10-15 sq.m. of space per employee to gauge an occupier’s spatial requirement is clearly being challenged. Paradoxically, there may be a positive spin off for the locations where these offices are located as the total number of distinct visitors during the week increases.
There is still uncertainty around the long-term effect of Covid-19 on long term office working models. This is manifesting itself in the leasing environment through shifting occupier space requirements, greater lease flexibility and increased demand for fitted-out spaces. Businesses will use lease events such as expiries and break options to rationalise their workplaces to reflect their adopted work models. As workplaces continue to adapt and adopt modern working practises it is important for occupiers to be cognisant of the spatial requirements needed to accommodate and attract the modern workforce and for investors and owners to be cognisant of the effect these work models will affect demand levels and lease events.
If you wish to discuss developments in the office markets further, please contact offices@bannon.ie.
M50 Business Park provides c. 18.890 sq. ft. of modern fitted office accommodation on new lease terms. Occupying a high profile location at the junction of Ballymount Avenue and Ballymount Road Upper, the available space provides both open plan and cellular office accommodation, as well as meeting rooms and a canteen facility. Offices available from 9,000 – 18,890 sq.ft. with generous car parking provisions.
For more information contact Lucy Connolly or Julia Halpenny.
https://bannon.ie/wp-content/uploads/Collage-2-copy-2.jpg13522020Bannon Webpage Adminhttps://bannon.ie/wp-content/uploads/bannon-logo-trans.pngBannon Webpage Admin2023-05-30 16:00:282023-05-30 16:00:37M50 Business Park
Take up for the first quarter of the year reached 278,000 sq.ft. across 45 transactions, representing a 45% decrease on Q1 2022. Deal sizes have decreased this quarter with 76% of transactions falling into the sub 5,000 sq.ft. bracket resulting in an average deal size of 6,300 sq.ft. Lease flexibility continues to be the dominant driver in demand. There is over 600,000 sq.ft. currently reserved (71 Transactions) which should boost Q2 figures.
https://bannon.ie/wp-content/uploads/Property-Management.jpeg15362048Bannon Webpage Adminhttps://bannon.ie/wp-content/uploads/bannon-logo-trans.pngBannon Webpage Admin2023-05-23 16:03:272023-05-23 16:03:38Shopping Centre Managers Association of Ireland
Property Picnic 2023 is complete – what a superb night of fun and entertainment with close to seven hundred people from the property sector all gathered in 1 Windmill Lane.
We have yet to add the numbers, but we will be excess of €100,000 again this year, all in aid of Cancer Trials Ireland. Thank you to all the Bannon volunteers who helped put the event together.
Thanks also to all our supporters this year including:
Keystone Sponsors: Core Capital Limited, Hibernia Real Estate Group Ltd, Glass Bottle, Mastertech Group, Matheson LLP, MCR Group, PrepayPower
F&B partner: House Dublin
Raffle sponsor: Red Rock Developments Ireland
All 46 supporting firms.
And finally, to all those who attended and made donations.
We have proven two things – firstly, we are fortunate to work in a very generous and friendly sector with great people and secondly, we have the ability to help when we can. Cancer Trials Ireland are doing fantastic work, we wish them continued success and no doubt this year’s donation will help them on their journey.
https://bannon.ie/wp-content/uploads/hmv.jpg6021080Bannon Webpage Adminhttps://bannon.ie/wp-content/uploads/bannon-logo-trans.pngBannon Webpage Admin2023-05-18 11:40:572023-05-18 11:41:09Music retailer HMV to return to Ireland with new Dublin store
The Dublin office market is experiencing a game of musical chairs as environmental, social and governance (ESG) goals and policies drive office occupiers to relocate to more sustainable, greener buildings. This has been further accelerated by changing occupier demands. It has created a redevelopment and refurbishment opportunity that attracts occupiers from older, so-called brown buildings.
Many owners and occupiers recognise the opportunity to achieve their ESG goals and policies while reducing occupational costs. Moreover, the ability to attract high-quality occupiers is only possible with a green building. The game of musical chairs provides vacant possession to allow the redevelopment or refurbishment of brown buildings, thus enhancing the value of the asset.
One example of this trend is AIB’s decision to vacate Irish Life’s 1 Adelaide Road base and consolidate to 10 Molesworth Street. This move allowed Deloitte, which occupies Deloitte & Touche House on Earlsfort Terrace, to commit to the redeveloped 1 Adelaide Road. As a result, the Earlsfort Terrace property will become available to Iput for its proposed redevelopment.
[ Older office buildings can be as good as new. They’re often even better ]
Another example is the relocation of An Garda Siochana from its Harcourt Street headquarters to the recently completed Walter Scott House on Military Road. Hibernia Real Estate Group swiftly demolished the building, paving the way for the construction of Harcourt Square, which will become KPMG’s new Dublin office upon completion. This shift will result in Kennedy Wilson achieving vacant possession of KPMG’s office on Stokes Place, which received the green light from An Bord Pleanála earlier this year.
Waterfront South Central in Dublin’s north docklands is set to become the new European headquarters of Citi Group. The deal was made with Ronan Group Real Estate (RGRE), which acquired Citi Group’s premises at 1 North Wall Quay. The current premises will no doubt be redeveloped or refurbished and reintroduced to the market as a green building.
Aside from the discussed redevelopment opportunities, there are significant quantities of grey space available, including Fibonacci Square, which is being leased by Meta; 1 Cumberland Place, leased by Twitter; and 2 and 3 Wilton Park, leased by LinkedIn. This Grade A ESG-compliant space will undoubtedly be involved in the next round of musical chairs in the Dublin office market. As occupiers of older buildings take up this space, it will free up further development opportunities. The attractiveness of these options to developers will depend on the specifics of the building, location, floor-to-ceiling heights, and the practicality and cost of upgrading them to either new offices or alternative uses.
The game of musical chairs has created opportunities for owners and occupiers to achieve their ESG goals and policies while simultaneously reducing occupational costs. This trend also presents an exciting opportunity for the redevelopment and refurbishment of brown buildings and the enhancement of asset value.
Lucy Connolly is divisional director and head of offices at Bannon
https://bannon.ie/wp-content/uploads/thumbnail_IMG_20230518_110348_094.jpg5731020Bannon Webpage Adminhttps://bannon.ie/wp-content/uploads/bannon-logo-trans.pngBannon Webpage Admin2023-05-18 11:29:102023-05-18 11:29:18Greening of Dublin office market presents threat and opportunity for owners of older buildings
Red Rock Developments Ireland Core Capital Limited, Hibernia Real Estate Group Ltd, Glass Bottle, Mastertech Group, Matheson LLP, MCR Group, PrepayPower
Bannon’s latest monthly Retail Pulse has now gone live.
In this publication Neil Bannon discusses the up to date retail sales figures recently published by the CSO and how Irish consumers continue to confound predictions.looks at the stark decrease in the household debt to income ratio and what this might mean for the retail sector
We are delighted to announce Prepay Power are joining Core Capital Limited, Hibernia Real Estate Group Ltd, Glass Bottle, Mastertech Group, Matheson LLP and MCR Group as keystone sponsors for Property Picnic 2023 in aid of Cancer Trials Ireland.
With less than two weeks to go tickets are selling fast so get yours now to avoid disappointment.
The Bannon Property Management Team has continued its growth from 2022 with a number of new instructions across the island. Q1 of 2023 has started off on the same footing with a number of new hires across the surveying and accounts team. Bannon now manages more than 1 in 4 of Irelands Shopping Centres & Retail Parks welcoming over 100 million customers every year. While the majority of our instructions are retail (Shopping Centres or Retail Parks), we also manage an increasing number of office buildings, most particularly in Dublin. This has required the team to focus on the sustainability aims of our clients and putting in place projects to achieve the goals.
The department has a 40-strong team of surveyors and accountants from 10 counties across Ireland. This is representative of the portfolio as we manage assets across all 4 provinces as we continue to grow our presence as a nationwide business.
The Bannon Head Office is based in Dublin, however, the firm adopts a hybrid working model for the Property Management Team. In several cases our surveyors live and work in the locality of the assets they manage.
The geographical spread of the Bannon portfolio and the surveyors who work with them, give us unique insights into the locality in which assets are located. Local knowledge is essential to ensure that the needs of local customers are met.
With recent instructions in Cork City and Cork County Bannon now has a major presence in the Cork market. This is in addition to new shopping centre management instructions in Waterford and Kilkenny.
If you want to talk to the Bannon team about managing a commercial property asset or are interested in joining Ireland’s fastest growing property management team, please check out www.bannon.ie.
https://bannon.ie/wp-content/uploads/8162-Bannon-Management-Portfolio-April-2023-scaled.jpg18102560Bannon Webpage Adminhttps://bannon.ie/wp-content/uploads/bannon-logo-trans.pngBannon Webpage Admin2023-05-04 14:55:272023-05-04 14:57:25Bannon, a national agency with a local touch
When the team at Bannon decided last year to organise a fundraiser for Cancer Trials Ireland in memory of their colleague Louise Creevy (née Doherty) who had sadly passed away, they thought it would be a one-off event. Such was the success of the Property Picnic, however, more than 650 guests from across the industry turned up for the gathering at 1WML in the Windmill Quarter and raised €170,087 in the process.
Given the picnic’s popularity, and with the funding raised contributing to trials in which 144 cancer patients in Ireland got to avail of cutting-edge treatments that they could not otherwise have accessed, and at no cost to themselves or the State, it’s hardly surprising that the event is back on this year. Keystone sponsorship for this year’s Property Picnic is being provided by Hibernia Real Estate Group, MCR, Core Capital, Matheson, Mastertech, and Glass Bottle (RGRE and Lioncor). Tickets for the event, which takes place on May 18th at 1WML in the Windmill Quarter, Dublin 2, cost €55 with an additional booking fee of €5.
Commenting on the importance of events such as Property Picnic to her organisation’s work, Cancer Trials Ireland chief executive Eibhlín Mulroe said: “Cancer Trials offer treatment options to patients. First and foremost, that is why many doctors working in cancer in Ireland seek to get patients on to trials.
“Within that, fundraisers like the Property Picnic help Cancer Trials Ireland to open a very important category of cancer clinical trials known as ‘investigator-led’ – read ‘doctor-led’ – trials. These trials are non-commercial. The research questions they ask are driven by patient need rather than commercial reasons.
“Last year, Property Picnic funds went towards four such investigator-led trials. Two of the trials were breast cancer trials, one in HER2-positive breast cancer, affecting one in five women in Ireland with breast cancer, the other in triple-negative breast cancer, affecting one in eight women, and is more common in younger women. The other two trials were in prostate cancer – one trial for previously untreated high-risk, localised prostate cancer, and the other for progressive, metastatic (ie cancer that has spread from where it first formed) prostate cancer.
“With the Property Picnic’s help, Cancer Trials Ireland was able to close out three of these trials, and in one case (the high-risk, localised prostate cancer study) present findings at a prestigious international cancer conference earlier this year, which showed the trial did achieve its primary objective of reducing prostate gland volume.”
Local authorities across the country have been historically dependent on commercial rates for a significant proportion of their yearly income. It is estimated that commercial rates are worth approximately €1.5 billion annually to the local government sector. As of 2019 the Department of Housing, Local Government and Heritage reported that rates income typically represents between 20% to 30% of local authority income. The highest proportion was derived in Fingal County Council with rates revenue representing 52% of total income for that year. The proportion of rates income to total revenue is likely to increase further with the move by some local authorities to substantially reduce the vacancy credit available to owners of unoccupied commercial properties.
Since 2017 the vacancy refund allowable by Dublin City Council has been reduced from 50% to nil, meaning an owner is obliged to pay the entire commercial rates bill attached to a property regardless of whether it is occupied or not. The corresponding vacancy relief available from the other Dublin Local Authorities for the current year are as follows; Fingal 30%, Dun Laoghaire-Rathdown 35% and South Dublin 50%.
For properties situated outside the main urban local authority areas landlords typically had no commercial rates liability for vacant properties. However, with Carlow County Council opting to reduce the maximum level of vacancy credit available to 50% for 2023, other local authorities across the country may follow suit. This changing landscape should cause owners and investors to closely consider the financial liabilities associated with holding vacant commercial properties. Depending on the nature of the property in question, options which may be open to owners to reduce their liability could include undertaking works to put the property beyond beneficial use or seek a change of planning to residential use.
For more information and advice regarding reducing your commercial rates liability contact Niall Brereton, Director of Professional Services.
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)
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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.
Bannon’s latest monthly Retail Pulse has now gone live.
Bannon
Bannon’s latest Office Pulse is now live.
– €750 Brown Thomas Voucher plus Platinum Membership
– 2 Tickets to a Rugby World Cup 2023 Semi Final at Stade de France – Saturday 21st October
Bannon’s latest monthly Retail Pulse has now gone live.
