Our latest Retail Pulse has now gone live. In this month’s edition our Retail Leasing team summarise activity in the pop-up sector in the run up to Christmas.
Full report available here.
The well documented log-jams associated with infrastructure delivery across the country, and the Greater Dublin Area in particular, have been the subject of much political discourse over the past number of months. Delays in delivering key pieces of infrastructure such as roads, waste-water treatment plants, electricity supplies etc. have stymied the construction of housing schemes which are required to address the country’s chronic housing shortage.
A notable example of where key infrastructure delivery can provide the catalyst for new housing delivery is the Ballymakenny area to the north-east of Drogheda, Co. Louth. In 2007, North Drogheda Development Partnership submitted a planning application to Louth County Council, seeking permission to develop 1,056 residential units across an 80-acre site at Ballymakenny, Drogheda, featuring a mix of houses, duplexes, and apartments.
While the global financial crash of 2008 stalled new housing delivery for a number of years, it was not until the completion of the first two phases of the Port Access Northern Cross Route (PANCR) in March 2024 that new housing developments on a substantial scale were enabled in this part of Drogheda. The PANCR, which had been approved but stalled for over a decade due to funding difficulties, was finally constructed by means of a public-private partnership through collaboration between Castlethorn, Louth County Council and HISCo (backed by the Ireland Strategic Investment Fund (ISIF).
Several developers are on-site delivering new residential units in the area with some 5,000 new homes earmarked for the locality, largely enabled by the completion of this long-awaited orbital road. Castlethorn alone is in the process of delivering approximately 1,250 new homes in the area with over 800 units completed to date at Ballymakenny Park and Ushers Mill. Bannon has provided ongoing valuation advice to Castlethorn as part of the Part V requirements throughout the various phases of this scheme of development.
The Bannon Professional Services Team has considerable experience in providing Part V Submissions and Valuations to Local Authorities on behalf of developers of residential projects. Contact Niall Brereton, Director – Professional Services & Land, for an initial consultation.
Photo courtesy of Castlethorn
The retail property sector is inherently complex and demands a high degree of expertise and strategic foresight. Since its establishment in 2005, Bannon has played a central role in shaping the Irish retail landscape, with involvement in over 50% of the Republic of Ireland’s shopping centre stock. Over the past 20 years, the firm has successfully guided clients through a series of global and domestic challenges, economic cycles, geopolitical disruptions, and public health crises, while consistently delivering value through tailored leasing and development strategies.
At the heart of our approach is a commitment to putting clients first. Every decision, recommendation, and negotiation is driven by an understanding of our clients’ objectives and a focus on protecting and enhancing their assets.
Market Leadership and Portfolio Scale
Bannon is currently engaged in the leasing and management of more retail schemes than any other agency in Ireland. Our active portfolio spans over 60 retail assets, encompassing town centres, shopping centres, retail parks, and local developments. Notably, we serve as leasing agents on four of the five major M50 schemes, underscoring our market leadership and operational scale.
Our team has also been instrumental in introducing a diverse range of international retail brands to the Irish market, including:
These strategic introductions have contributed to the evolution of Ireland’s retail offering and enhanced the competitiveness of our clients’ assets. We view every brand placement and leasing strategy as an opportunity to create long-term value for our clients.
Strategic Response to Economic Disruption
During the Global Financial Crisis of 2007, Bannon demonstrated our ability to support clients through prolonged market volatility. We maintained occupancy levels and renegotiated lease terms to protect asset performance during a challenging decade for the retail sector. Our client-first mindset ensured that owners and occupiers alike received the guidance they needed to weather the downturn.
The onset of Brexit in 2020 introduced further complexity, particularly in relation to logistics and supply chain costs. Through proactive engagement and strategic advice, we enabled clients to mitigate risk and implement solutions to safeguard asset value.
Adaptive Leadership During the COVID-19 Pandemic
The COVID-19 pandemic presented unprecedented challenges for both property owners and occupiers. We adopted a collaborative and solutions-oriented approach, facilitating the renegotiation and re-gearing of over 200 leases. This ensured continued occupancy, enhanced WAULT (Weighted Average Unexpired Lease Term), and sustained rental income, all critical factors in maintaining asset stability during a period of significant uncertainty.
Continued Support Amid Geopolitical Instability
The war in Ukraine has had a pronounced impact on inflation, supply chain dynamics, and labour costs, particularly within the retail sector. We continue to provide strategic advice to clients, helping them navigate these pressures and adapt to evolving market conditions. Our approach is grounded in a client-first ethos, ensuring that every recommendation is aligned with their long-term goals.
A Proven Partner for the Future
Over the past two decades, we have consistently demonstrated our ability to provide market insight and operational execution. Our track record reflects a commitment to excellence, and long-term client success. As new challenges emerge, we remain fully prepared to support clients with the same level of diligence and strategic clarity that has defined our approach since inception.
Our latest Retail Pulse has now gone live. In this month’s edition our Retail Leasing team looks at recent leasing activity in the run up to what promises to be a very busy Christmas trading period.
Full report available here.
Great opportunity to acquire a high yielding prime retail asset situated within the historic GPO Building on Henry Street.
If you’re interested in finding out more about this investment opportunity, please feel free to contact Brian Morton and Roderick Nowlan.
Many thanks to Ronald Quinlan for the feature within The Irish Times.
Article Published in The Irish Times
Q3 showcased an important shift in sentiment.
Our latest Office Pulse explores how almost half of the space transacted was the result of expansion activity, whether expanding in existing office or relocation. This is a sign that existing occupiers are growing their footprint while looking for a more sustainable space. This outlook change is reflected in capital markets activity.
To put this into context, if we exclude the two very large double Ardstone’s PRS transaction, offices represented 55% of turnover and 33% of transactions!
To view the full report, please click here.
Our latest Retail Pulse has now gone live. In this months edition our Retail Leasing team looks at the recent evolution of “Competitive Socialising” and the knock on effect it has had on occupancy in retail sector.
Full report available here.
Irish Household Disposable Income and Household Consumption Expenditure have both risen sharply, and largely in parallel, since 2021. This pattern, briefly interrupted by the pandemic, has been in place since 2014 following a post-financial crisis stagnation.
The Savings Ratio has hovered between 10% and 16% since 2008, excluding a pandemic spike to 33%. Despite outside influences of inflation, war, and global uncertainty, Irish households have consistently set aside savings, building up a €167 billion buffer.
While headlines often focus on short-term shifts, the long-term picture is one of steady, disciplined consumer behaviour, a resilience that matters far more than month-to-month fluctuations.
Source: CSO (Central Statistics Office Ireland) Central Bank of Ireland
Over the past two decades Bannon’s commitment to fostering strong client relationships has been unwavering. We have had the privilege of witnessing numerous client companies thrive, bolstered by the robust professional advice provided by our firm. Among these success stories stands our esteemed client, the Joe Duffy Motor Group, Ireland’s largest new and used car dealership network. Our journey together has been a testament to the adage, ‘client success is our success.’
Established in 1972, the inception of Joe Duffy Group’s impressive growth aligns closely with the appointment of Gavin Hydes as CEO in 2005, the same year Bannon was established. From a single dealership on North Road in Dublin, the Joe Duffy Group has expanded to a formidable network of 23 flagship locations nationwide. This phenomenal growth has established them as Ireland’s leading motor retail group.
Bannon has been instrumental in several key milestones of the Group’s expansion. A notable example is the 2019 land acquisition and development of three state-of-the-art showrooms off the M50 at Charlestown. This strategic project, which represented an investment exceeding €30 million, included Joe Duffy Volkswagen, Joe Duffy BMW, MINI, Motorrad, and Porsche Centre Dublin. Our property advice was pivotal in realising this high-visibility development.
As a trusted property advisor for the past 20 years, we take immense pride in our role in the Joe Duffy Group’s expansion. We look forward to continuing our partnership and contributing to their future successes and ambitious growth plans.
Here’s to many more years of collaborative achievements!
It’s a big deal being 20!
The Bannon Investment Team has celebrated some big ones over the years.
Check out our top 10 deals over the last 20 years which have seen over €2.5 billion in investment activity here.
For any enquiries, please do contact the investment team, Roderick Nowlan, Cillian O’Reilly, and Brian Morton.
Our latest Retail Pulse looks at the progress made in leasing up the limited supply of new retail space that has been developed recently.
Full report available here.
A big thank you to Tina-Marie O’Neill at the Business Post for covering this story in Sunday’s edition, with Ray Geraghty explaining that ‘this marks the culmination of five years of planning, investment and implementation of sustainability measures’.
At Bannon, we believe that exceptional property management is built on strong relationships and a shared commitment to continuous improvement. One of our standout examples is International House in the IFSC.
Trevor Nally has been instrumental to the running of International House for an incredible 26 years, first joining in 1998 as security and receptionist with Global Securiforce. Back then, communication was all done by phone (no emails!) and a single black-and-white BMS computer ran the systems.
When Bannon took over the Office Property Management in 2008, we quickly recognised Trevor’s dedication and local knowledge and we asked him to take on more responsibility. Since then, he has remained a constant through multiple transitions in security providers and owners. In 2017 the building was acquired by Intesa Sanpaolo and retained Bannon as the managing agent.
But the story of International House isn’t just about consistency, it’s about progress.
Intesa Sanpaolo have invested significantly in the building’s infrastructure and occupier experience. Most recently they have upgraded the ground floor shower and changing facilities and a brand new, modern reception area is currently in development. These enhancements reflect a continued commitment to quality, comfort, and the long-term future of International House. A workplace that is not just functional, but forward-thinking and occupier focused.
Trevor’s unwavering commitment, strong relationships with both occupiers and the owner, and his hands-on approach to caring for the building have made a real difference. His story is a reminder that behind every great building is someone who genuinely cares.
Thank you, Trevor for your dedication and to Intesa Sanpaolo for continually investing in the future of International House.
Our latest Retail Pulse has now gone live. In this months edition our Retail Leasing team overview activity in the first half of the year which can be summarised as strong demand for space and limited opportunities given the high level of occupancy in the market.
Full report available here.
The second quarter of 2025 marked a notable resurgence in the office sector, driven by a small number of high-value transactions that significantly boosted its overall investment turnover.
While Q2 2025 saw total office take-up in Dublin rise to 667,989 sq. ft., this figure is largely boosted by a single pre-let deal — Workday’s move at College Square. Excluding that transaction, market activity stands at just 250,000 sq. ft., reflecting a softer quarter.
Demand continues to centre on high-quality, Grade A space, with occupiers prioritising ESG compliance, flexibility, and hybrid-working adaptability. A shift in location trends also emerged, suggesting growing interest beyond the city core.
Overall, the market remains active but cautious, shaped by economic uncertainty and evolving corporate priorities.
To view the full report, please click here.
Our latest Retail Pulse has now gone live. In this months edition our Retail Leasing team summarise some of the occupiers that are increasing their footprints across the country.
Full report available here.
Although we constantly are beset by negative stories about our inability to deliver anything in Ireland and the pace at which projects proceed is frustratingly slow, we have perhaps become a bit complacent about the expectation that things are always guaranteed to improve. Has the transformation of Ireland since 2000 made us complacent?
Over the first quarter of this century, we have completed the motorway network linking Dublin with the border (2007), Cork (2009), Galway (2009) Limerick (2010) and Waterford (2010) as well as completing the M50 (2005) and Port Tunnel (2006). It’s not just roads; the LUAS shook up Dublin’s public transport system in 2004 and new Airport Terminals were built in Dublin (2010) and Cork (2006).
In Sport and Culture, Lansdowne Road was redeveloped into the Aviva Stadium (2010), Sports Campus Ireland (2019-2025) arrived in northwest Dublin whilst Croke Park became one of the biggest stadiums in Europe (2005). The redeveloped Point Depot opened in 2008 whilst the Bord Gais Theatre followed in 2010.
From a property perspective, progress has also been astonishing. It is hard to believe that 40% of Ireland’s current housing stock has been added since 2000, just under 900,000 homes. In retail, Pavilions (2000) and Dundrum TC (2005) top and tailed Dublin’s retail market North and South whilst Mahon Point in Cork (2005) and Kildare Village (2006) were just two of the dozens of additions to the retail landscape nationally. In offices, over half of Dublin’s current stock of offices, almost 500 buildings totalling over 25m sq. ft. didn’t exist in 2000 and nobody had even heard of a data centre or Amazon distribution hub.
All of this was achieved over 25 years which included a global financial meltdown, the collapse of the banking system, an IMF bailout, a worldwide pandemic and a European war.
This astounding improvement in our built environment and infrastructure has perhaps made us a bit blasé and assume that everything is pre-destined to improve on a constant basis. Very few other countries in the world can lay claim to such as a track record of improvement. It is hard to imagine living in an Ireland in 2025 without all that the last 25 years has delivered.
Author: Neil Bannon, Executive Chairman, Bannon
Date: 24th June 2025
Our latest Retail Pulse has now gone live. In this months edition our Retail Leasing team reminds you not to buy into all the negativity surrounding the retail market.
Full report available here.
Our latest Retail Pulse has now gone live. In this months edition our Retail Leasing team look at some of the recent activity in the Irish Food & Beverage market.
Full report available here.
Former British Prime Minister Harold Wilson once quipped that “a week is a long time in politics”. While not a politician I can personally attest to the fact that 20 years is most definitely a long time in the commercial property profession. Having commenced employment with Bannon in the heady days of January 2005, there have been many ups, downs and ‘back-up agains’ in between.
The initial years of my career in Bannon, and the development land department specifically, were filled with developer flyovers via helicopter, seven figure deposit cheques, foreign Christmas parties (!) and a general ‘the only way is up’ attitude fuelled by copious Kool-Aid consumption long before the phrase became fashionable on this side of the Atlantic. By the Autumn of 2008 the seismic collapse of Lehman Brothers heralded the onslaught of the great financial crash and the development land sector in Ireland (as in most parts of the world) ground to a crushing halt. Thoughts of ‘what now?’ quickly took hold amongst property professionals and the answer came in the form of four letters which would dominate the sector for many subsequent years, NAMA.
The National Asset Management Agency was founded in 2009 and valuers were contracted to conduct asset valuations by either the lending institution transferring loans over to NAMA or by NAMA itself to provide checks and second opinions. And so ensued a colossal nationwide valuation exercise of every conceivable property asset ranging from abattoirs to retail parks and everything in-between. Overnight, investment agents and leasing teams who were largely at a loose-end due to inactivity in their sectors were seconded to put their shoulder to the wheel and reacquaint themselves with ‘The Red Book’. It’s unlikely that we’ll ever experience a valuation exercise on such a scale in this country again with property assets worth an estimated €50 billion valued over the space of three years in the depths of a recession.
While valuations could never claim to be the sexy side of the profession, the NAMA valuation process kept the lights on, wages paid and demonstrated the resilience and flexibility of the fledgling Bannon brand which not only weathered the storm but flourished in the post-apocalyptic commercial property market. Niall Brereton is a Director of the Professional Services & Land Department in Bannon.
Image taken from NAMA
The Dublin office market has had a strong start to 2025, with significant leasing activity and a clear trend towards high-quality, centrally located spaces. Notably, city centre areas accounted for 80% of office take-up in Q1, reflecting ongoing demand for accessibility, modern amenities, and proximity to transport links.
As the workplace landscape continues to evolve, businesses are prioritising Grade A office space to meet the needs of their teams. Dublin remains an attractive hub for both established and emerging industries, particularly in the TMT sector.
Exciting times ahead for the market!
To view the full report, please click here.
The retail sector dominated turnover this quarter, accounting for nearly 50% of transactions, with Bannon involved in most deals. Geopolitical uncertainties have impacted larger transactions, especially in the office sector. However, robust activity in the sub-€15 million market is expected, driven by French funds and high-net-worth individuals.
To view the full report, please click here.
Our latest Retail Pulse has now gone live. In this months edition our Retail Leasing team look at some of the recent activity in the Retail Park market.
Full report available here.
Great for Bannon to get such a loud MIPIM shout out.
Many thanks to Colm Lauder and the Business Post for the big mention quoted below:
‘Agents Bannon has long championed Ireland’s presence at Mipim through its Great Ireland Lunch, hosted by Neil Bannon and Roderick Nowlan. Now in its 20th year, this event has established itself as the premier Irish market gathering for global institutional investors, playing a significant role in attracting international capital to Irish opportunities. Over those 20 years the need for Irish stakeholders to influence global capital has grown in significance’.
Image taken from The Business Post
Neil Bannon joined Newstalk Bobby Kerr on Down to Business on Saturday to delve into the topic of Dublin retail. Is it experiencing a decline or is it simply a changing of the guard?
Listen to the insightful discussion here.
Our latest Retail Pulse has now gone live. Despite the loss of New Look (27 stores) and Quiz (3 stores) it has been a very encouraging start to the year with a number of retailers already vying for this newly available space.
In our “Expert Insight” section Neil Bannon discusses how “Competitive Socialising” concepts can provide alternative uses in existing retail destinations.
Full report available here.
Are you ready for the May 2025 deadline?
The well documented implementation of the Residential Zoned Land Tax (RZLT) has posed numerous questions regarding the steps to be considered by the owners of land falling within the scope of the tax. Non-developer owners of land which is subject to RZLT, such as private individuals, religious institutions, farmers etc, may wish to apply to have their land rezoned by their Local Authority prior to 23rd May 2025. Subject to satisfying certain criteria such a landowner can claim an exemption from RZLT for 2025 from Revenue. A decision to seek a rezoning can have significant impacts on the future value prospects for such properties particularly in the context of amendments to planning legislation brought about by the Planning and Development Act 2024. Under the 2024 Act the lifetime of Development Plans will be extended to a 10 year lifespan, representing a significant extension from the 6 year lifespan heretofore.
Therefore, landowners who seek to rezone their land to bring it outside the scope of RZLT will face an extended Development Plan cycle should they wish to revert to a residential zoning at some stage into the future. Consequently, the implications of RZLT requires careful and strategic consideration so as to maintain and maximise an asset’s long-term value.
Contact Niall Brereton, Sam Harney and Paul Doyle to discuss appropriate strategies.
Our latest Retail Pulse has now gone live. In this publication our retail leasing team take a lookback at some of the notable new entrants and new store openings in 2024. Separately in our “Expert Insight” section Neil Bannon looks at the recent economic data and what this is likely to mean for the retail sector for the rest of 2025 and beyond.
Full report available here.
The Dublin office market experienced significant growth in 2024, with total take-up reaching 2.2m Sq.ft., an increase of approximately 780,000 Sq.ft. compared to 2023. This surge was primarily driven by the top 5 deals of the year, 4 of which were in excess of 100,000 Sq.ft. Alongside the pending Workday deal, which will add 425,000 Sq.ft. in College Green, these high-profile transactions point to a potential positive shift in the office market. As international businesses increasingly introduce return-to-office mandates, we’re seeing early signs of a market recovery. With the 5-year average at 1.9m Sq.ft. and the pre-Covid average of 3.15m Sq.ft., the outlook for Dublin’s office market in 2025 is looking promising.
Roderick Nowlan, Julia Halpenny, Cillian O’Reilly
To view the full report, please click here.
Now that the property investment market has “survived until ‘25″, what actually happened in the year just past and what does the future hold? See Bannon’s 2024 Investment Pulse which includes an outlook for the year ahead.
To view the full report, please click here.
The Central Bank of Irelands tracking of Household savings continues to show positive growth reaching €159.6bn in November 2024. This marks a 5.1% year-on-year increase and a modest 0.3% rise from October. In contrast, household debt grew at a much lower rate, up by 2.2% year-on-year, with no change month-on-month. Household savings have increased by an impressive 45% since 2019 and Debt has grown by only 12%. As a result, savings are €56 bn higher than debt. The strong savings position shown by Irish households provides more financial flexibility for consumer spending and a potential for further increase in retail sales.
Our latest and final Retail Pulse of 2024 has now gone live. In this publication our retail leasing team provide a summary of some of the deals which we completed in 2024. Separately in our “Expert Insight” section Neil Bannon looks at the dichotomy between how the property industry is constantly looking backwards at previous transactions to establish value, whereas investors are only interested in looking forward to the future.
The team at Bannon would like to wish all our clients and the industry at large a very Happy Christmas and a prosperous New Year. Roll on 2025!
Our Retail Pulse is updated monthly and all are available on our website – www.bannon.ie.
Full report available here.
‘Our latest monthly Retail Pulse has now gone live. In this publication our retail leasing team review the various Pop Up shops that are active in the market at this time of year. Separately in our “Expert Insight” section Neil Bannon looks at the evolution of the Christmas trading period and how it is now occurs over an extended period of time and doesn’t present the same level of risk to retailers as once was the case’.
Full report available here.
Swords Pavilions is where you can meet, eat, sip and shop, all under one roof. One of Dublin’s premier shopping destinations with over 100 global and national retailers to choose from, the centre offers world-class stores and is an unrivalled destination for shopping, dining and entertainment.
The centre has set the aim of being carbon neutral by 2030. It has has already been recognised with various awards for the implementation of a number of eco-friendly initiatives, such as Solar Panels, recycling programs and energy-efficient operations, aligning with modern sustainability goals.
Strategically located near Dublin Airport and just off the M1 motorway, the shopping centre is easily accessible by car, with over 2,000 parking spaces available in the centre. Parking is free for the first two hours in the centre. Swords Pavilions Shopping Centre is a major retail and leisure destination which has grown since 2021 to become one of the most popular shopping centres in the region.
Notable stores include Dunnes Stores, SuperValu, H&M, Zara, Next, TK Maxx, River Island and JD Sports. There are also ample dining options in the centre to include cafes, restaurants, and fast-food outlets, catering to different tastes and preferences. Popular options include Starbucks, Nando’s, Milano, Five Guys, Zaytoon and many more.
The centre also has a 11-screen cinema Movies@Swords, offering the latest movies and a premium viewing experience. The addition of Zero Latency in 2024 offering virtual reality gameplay makes the Pavilions a hub for leisure activities in addition to shopping.
It hosts regular events and promotions, making it more than just a shopping destination. Seasonal events such as ice skating, family-friendly activities, and cultural events often take place, enhancing its role as a community hub.
Overall, Swords Pavilions Shopping Centre is a vibrant and versatile destination, blending shopping, dining, and entertainment to cater for all needs. Its convenient location and various facilities make it a favourite among locals and visitors alike.
Bannon is excited to share that Neil Bannon will be judging the Business Post National Property Summit & Awards 2025. The Awards ceremony will take place on the 27th of February at the Intercontinental Dublin, and will celebrate individuals and organisations from across the entire property industry in Ireland.
Nominations opened Tuesday 12th November, and the comprehensive list of categories will identify the highest level of achievement across both the residential and commercial sectors.
So, enter now and shine a light on the very best in the Irish property sector! – https://nationalpropertyawards.ie/awards-categories/2025/
Join us for the black-tie Awards ceremony on February 27th – https://events.businesspost.ie/event/the-national-property-awards/
The awards keep on coming for the Team in Swords Pavilions. The team had an extremely busy Friday last week collecting a number of awards. These include:
Sustainable Energy Authority of Ireland (SEAI) Energy Team of the Year
Fingal Chamber Business Award for Best in Climate Action
Fingal Chamber Business Award for Business of the Year (large / corporate)
The awards are in addition several others won this year by the team. Congrats to the team in Pavilions. The awards are testament to the fantastic work being carried out in the centre.
Photo taken from Swords Pavilions
A powerful inclusivity programme has been implemented through a partnership with Dungarvan Shopping Centre and The A-Team Dungarvan that provides local assistance to people with autism, ADHD, and all abilities. The goal of the project is to increase accessibility and inclusivity for all shopping visitors. Through this initiative quiet hours were introduced in the centre every Sunday morning, Starbucks, in partnership with The A Team, sponsor a coffee morning for families of all abilities, Easons organised Art Therapy sessions, plus a number of other events all year round.
As part of the 20th birthday celebrations at the centre, it was important to continue the inclusion of all in the community. Representatives from The A-Team had a stand on the day promoting ‘Quiet Time’ by handing out balloons. For the festive season Dungarvan Shopping Centre is sponsoring the Autism friendly Family Walk in Colligan Woods, in December. As part of the Santa Meet and Greet Programme a special sensory Santa time is available for children with Autism, sensory issues or additional needs and their families. To top it off, the centre has autism car spaces available on each level signalled by Sunflower signs 🌻
From the Bannon Property Management Team, well done to everyone involved in such an important and inclusive initiative.
Bannon would like to extend a big congratulations to Jack Martin, Centre Director at The Square Tallaght, on his nomination for Tallaght Person of The Year award in the business category.
Recognition that is truly well deserved and we wish Jack the very best of luck!
Photo taken from The Square Tallaght
Neil Bannon joined Newstalk Mandy Johnston on Down to Business on Saturday to discuss the trend that retail property prices in the provincial retail sector seem to be increasing in value.
For the full discussion, please click here.
Our latest monthly Retail Pulse has now gone live. In this publication our retail leasing team review recent openings/signings in the run up to a busy Christmas period.
Separately in our “Expert Insight” section Neil Bannon looks at the evolution of lease agreements and the frustration among some European headquartered retailers with the complexity of Irish leases. In general “less is more”, however in the context of Irish leases the inverse would appear to be the case.
Full report available here.
Neil Bannon, chairman at Bannon, confirmed that new leases are now typically for seven years. This usually involves the tenant repudiating their rights to renew the lease on expiry, which also improves flexibility for the landlord. This flexibility is of increasing importance for landlords too. Mr Bannon sees this flexibility as a positive move and said that “we are moving closer to the European model”. This flexibility is of increasing importance for landlords too. “Consumers demand excitement and change, so landlords need the ability to actively manage their portfolios.”
This increasing flexibility has improved Grafton Stree with a greater variety of smaller European retailers, rather than a copy of a typical UK High Street.
This era of shorter leases increases the likelihood of rents rising, Mr Bannon said. “There is less emphasis in the market on the rent review cycle, and more on new lettings and change.”
He also pointed out that rents quoted in the market now are “net effective rents”, which take account of any rent-free period granted. There has been an ”artificial softening” in rents, since pre-Covid, when “headline rents” ignored tenant incentives. The rents quoted now are “more honest”, he concluded.
Best of luck to the team in Swords Pavilions Shopping Centre who have been announced as Finalists in the 2024 Pakman Awards in the Business Recycling Champion category. This is deserved recognition of the hard work and diligence by the team over the past number of years in the centre. The team won this award in 2023 so its great to see them in the running again.
The Pakman Awards are Ireland’s leading National Environmental Awards that recognise excellence in recycling and waste management among businesses, organisations, community groups and individuals in Ireland.
The winners will be announced on October 24th!
We wish the Swords Pavilions team the best of luck in the final and congratulate them on being nominated again.
Our latest monthly Retail Pulse has now gone live. In this publication our retail leasing team focus on city centre footfall, occupancy rates and the knock on effect on leasing activity.
Separately in our “Expert Insight” section Neil Bannon looks at some of the key macro-economic changes in the last 10 years which are impacting the retail sector. It’s hard to find the negatives in any of the data!
Full report available here.
Bannon is delighted to issue our Q3 Capital Markets report which is all the more relevant today, the first day of EXPO REAL (Messe München).
With retail representing one third of turnover this quarter (and Bannon having sold, bought, or now managing 97% of all these assets), what better time to reach out to the leading firm in Irish retail and Ireland’s largest indigenously owned commercial agency.
Contact Neil Bannon or Roderick Nowlan for an EXPO chat.
To view the full report, please click here.
Although the Dublin office market experienced a significant drop in take-up this quarter, falling from 877,600 sq. ft. in Q2 to 551,200 sq. ft., sentiment remains positive for the prime ESG segment. A key driver of this quarter’s activity was LinkedIn’s assignment of 133,400 sq. ft. to EY at 2 Wilton Park, following Stripe’s move to the same development in Q2. It is also worth noting that the 425,000 sq. ft. Workday deal is excluded from this quarter’s figures as it has yet to be signed.
As a result, the underlying positivity can be seen in the significant increase in reserved space in Q3, totaling approximately 927,400 sq. ft. compared to 514,000 sq. ft. in Q2.
General Commentary from Executive Chairman Neil Bannon
The conversation around sustainability in the Irish commercial property sector has evolved over the last 12 months. Although everybody was aware of the significance of the challenge last year this has been brought into sharper focus as the various sources of capital in the market have set out their stall. Access to and cost of capital, both funding and equity, is clearly going to be very different for assets depending upon their sustainability credentials. This has been most evident in the office sector where deals continue to be done in new buildings with market leading green credentials both from expanding entities and those relocating form brown buildings. As investor and funders watch this they are becoming increasingly concerned about the risk of obsolescent for older stock and how the value of older buildings will have to reflect the cost of bringing them up to standard.
It is interesting and, we think, helpful to see the conversation move from an aspirational desire to become more sustainable to a clear financial motivation to protect capital. This will accelerate activity in the market as capital positions itself to ensure it is a net beneficiary. Bringing market forces to bear will help our green transition and is a welcome development.
Property Management from Directors Ray Geraghty and Alex Patterson
As custodians of a nationwide portfolio of real estate the Bannon property management team are involved in multiple projects at any moment in time where the focus is sustainability and energy conservation. There is an awareness about sustainability and ESG measures among property owners, funders, asset managers, occupiers, and service providers which is driving positive change.
In the last 12 months Bannon have been involved in some very significant sustainability projects which are now delivering much need energy savings for stakeholders. One such project was completed at Athlone Towncentre Shopping Centre (in conjunction with the SEAI) at a cost of c.€1.6 million. As a result of the project energy consumption at the shopping centre has reduced by almost 50%.
Retail Agency from Directors James Quinlan and Darren Peavoy
Smaller Domestic Retailers are becoming more ESG aware however have not fully embraced the concept. International and national retailers on the other hand have delivered significant ESG improvements across their portfolios with big improvements in solar generation and logistics improvements being a significant focus. Some international retailers are beginning to commit to BREEAM Good fitouts however are seeking significant assistance from owners to deliver this. Some institutional retail property owners are very focused in improving the BER status of their high street portfolios whereas shopping centre owners are very focused on improving energy usage in common areas within their schemes.
Where the ESG agenda was previously being pushed by the owners, we are seeing a shift in this from a smaller group of retailers who require owners to sign up to their ESG agenda rather than the other way round. Retailers are focused on reputation and branding, and they are utilising ESG credentials as a powerful marketing tool. This focus will begin to see a shift in the retail leasing market as it will influence building design and occupier’s expectations.
Valuations from Managing Director Paul Doyle and Director Niall Brereton
The Bannon Professional Services team continues to embrace ESG within our reporting, whilst also complying with RICS Valuation Practice Guidance Notes on ‘Sustainability and ESG in Commercial Property Valuation and Strategic Advice’. This Guidance Note requires the valuer to demonstrate how they have considered sustainability and ESG credentials in their valuation approach, calculations and commentary. This commentary is required to include a reference to potential future cost liabilities to meet regulatory and investor requirements.
In the past year or so we have noted that our building owner client has become much more aware and reactive to ESG. By example, if we are valuing a trading asset the client will most likely have responses to-hand in terms of our standard queries on the energy efficiency or otherwise of their premises. Elsewhere, if valuing an older office premises, a client will likely have a solution modelled to enhance the property’s ESG credentials. In the case of offices we continue to see a widening value gap between older/stranded buildings and those which are ‘B or better’
Investment and Office Agency from Executive Director Rod Nowlan
Sustainability has firmly moved to the top of the investment and office leasing agenda across all size requirements. It is no longer a focus of just the larger lots sizes. Its pursuit will be a key factor in the acceleration of “the big switch” where many office occupiers are beginning to act upon what they now determine is their new office size and style requirement in a maturing blended working market. ESG is a key target in this mix. As a consequence, we are going to see a material acceleration in office obsolescence creating a huge opportunity for those with the skills to efficiently transition these buildings back to the institutional mainstream. In this regard, valuing and selling these assets will require an in-depth analysis of the true costs associated with bringing them up to standard.
Internal from Chartered Surveyor, Sustainability Manager Cillian O’Reilly
Bannon has always had sustainability in mind within the office ever since Joe Bannon himself monitored how many pages were being printed by each team member. The culmination of this was Bannon developing and implementing an ISO 14001:2015 Environmental Management System which was certified by the NSAI in 2022.
Bannon’s Carbon Footprint is relatively low at 78.7 tonnes CO2E in 2023, none the less the firm has taken steps to target and reduce its largest contributors namely electricity usage and commuting milage. Bannon has made huge strides to curate a greener and more efficient workplace and will continue to be a market leader as trends evolve.
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