Investors follow footfall into retail parks as high street shuts up shop

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Covid-19 has flipped the performance of retail assets on their head. The previously-held view was that the prime to tertiary hierarchy was – city high street, major town centre, retail park, grocery retail and local necessity centres. However, in terms of demand and performance from the occupiers on the ground, this traditional hierarchy has now been reversed and is resulting in differentiation within a sector previously considered by many investors as a homogeneous entity.

Footfall

Footfall is a very effective barometer to highlight this shift. High street has undoubtedly been the most negatively impacted retail market sector with Covid-19 decimating footfall and in-shop spend. Bannon estimates that there are almost 40 shops either vacant or available on Grafton Street and Henry/Mary Street out of a total of 162. Similarly the hospitality sector, including food and beverage, like non-essential retail, has been severely impacted during Covid-19. Despite a strong recovery city centre footfall counts for Q3 2021 were still 30 per cent below 2019 levels. According to the IPD Index year-on-year total returns within the sector are showing minus 12.5 per cent.

In stark contrast the necessity retail sector (being grocery, medical and service-related offers) as well the retail parks have proved to be exceptionally resilient through Covid and continue to perform very strongly. Car counts in many retail parks for Q2 and Q3 2021 exceeded 2019 levels with retailers reporting considerable turnover growth. Provincially convenience-focused shopping centres have remained resilient with limited vacancy as shoppers choose convenience and to shop locally. We are seeing footfall levels return by up to 90 per cent of their 2019 equivalents.

In the latter half of 2021 the ‘money’ began to follow the data into retail parks as is evidenced by the position taken by AM Alpha in Nutgove Retail Park (€66.3 million) and M&G Investments through the acquisition of the Parks Collection Portfolio (€74.5 million) and the agreed acquisition of Manor West (€56 million). We estimate retail parks transactions will represent more than two thirds of all retail transactions in 2021 and will be the only retail sector within the IPD showing positive total returns for 2021 (currently running at plus 6.3 per cent).

Inflation

Supported largely by the threat of inflation, the resurgence in the retail grocery sector had already commenced pre-Covid in the UK and Europe, with long-let standalone grocery often trading at yield levels of between 4 and 5 per cent. This demand is beginning to emerge in the Irish market, with a shrinking gap between what the sector is trading at in the UK and the perceived value in Ireland. More recently we have seen a number of transactions which are at materially stronger yield levels than market expectation and these are due to sign before the end of the year.

Due to the structural limitations in scalability in the “grocery market” sector in Ireland (where most anchor stores are owner occupied) and the large delta which is developing between “pure grocery retail” and “necessity retail” (being service, health, medical and food-related occupiers) this sub-sector may come into more mainstream investment focus in 2022. The disconnect between the emerging grocery yields (5 per cent to 5.5 per cent) and those in the supporting “necessity retail” (9 to 10 per cent plus) seem irrationally high, especially as the necessity retail operator’s turnover is derived from the same customer base as their high-value grocery anchor neighbours. These centres along with retail parks serve to highlight opportunity within the sector where the negative narrative in the overall retail sector is keeping yields high despite resilient trading.

Rod Nowlan is an executive director at Bannon

Article by The Irish Times 

Winter Maintenance – Case Study

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Background

The Property Management team at Bannon currently manage over 70 commercial sites across Ireland. The portfolio is made up of Shopping Centres, Retail Parks, Business Parks and Office Parks.

In recent years there has been an unquestionable shift in weather patterns, and this is particularly noticeable in the colder winter months. One such example was the severe weather experienced in February 2018 when Storm Emma hit Ireland. During the course of the storm, we saw significant accumulations of snow across our sites and temperatures as low as –11.0°C.

In any given year we see c.100 million visits to Bannon managed sites across the country and maintaining safe access to these sites is a crucial part of our role as Property Managers. We manage this risk by appointing contractors to carry out gritting services during periods of cold weather and snow clearance when required.

A number of years ago we recognised the obvious synergies associated with managing our winter maintenance services on a portfolio basis. For that reason, we have split our portfolio into three distinct zones (see below) and we tender the contract every 3 years.

Zone 1 – Greater Dublin Area

Zone 2 – South & South East

Zone 3 – Midlands, West & North West

Tender

A sub-team of Property Managers were appointed to oversee the tendering of the Winter Maintenance contract for the portfolio. The following tender process occurred;

Phase 1 – Review of portfolio geography and creation of 3 distinct zones

Phase 2 – Preparation of Request for Tender (RFT) document

Phase 3 – Shortlisting of suitable contractors including a visit to contractors’ facilities

Phase 4 – Issue RFT to shortlisted parties

Phase 5 – Review & analysis of tenders

Phase 6 – Selection & contract award to winning tenderers

In total the RFT was issued to 10 contractors and we received 6 complete tender submissions. The submissions were assessed and ranked based on pre-set criteria. All but one tenderer submitted a proposal for all three zones. The sub-team assessed the proposals and made a recommendation to the directors of the department to appoint three separate contractors (one per zone). This recommendation was followed and the contracts were awarded to the following parties;

Zone 1 – Greater Dublin Area – SAP Landscapes

Zone 2 – South & South East – O’Brien Facilities

Zone 3 – Midlands, West & North West – Ken Fitzsimons Landscaping

Benefits

The benefits of carrying out a procurement process of this nature are far reaching, to include;

  1. Value – The buying power of procuring the same service across 70 sites at the same time.
  2. Service – The inclusion of strict KPI’s in the respective contracts means a consistent approach across the portfolio.
  3. Health & Safety – Once predicted weather conditions meet a certain pre-agreed criteria our contractors will automatically mobilise to all sites and carry out gritting. In so far as is possible we have attempted to remove any subjectivity from the decision-making process.
  4. Insurance – Each appointed contractor has undergone an extensive vetting process to include a detailed review of their insurances.
  5. Administration – The associated burden of managing individual contractors across 70 sites has been significantly reduced.

Overall, we have seen significant benefits in procuring our Winter Maintenance services on a portfolio wide basis.  Our retail clients can enjoy consistency of service across all sites.  With a proactive and data driven approach, we ensure that footfall does not drop and visitor health and safety is managed.

 

Neil Bannon on the Future of Dublin Retail

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Neil Bannon is a leading expert on retail property in Dublin. In the upcoming December 2021 issue of the Dublin Economic Monitor, Neil provides his thoughts on the future of the Capital’s retail core.

In advance of the publication, the below video gives a snapshot of Neil’s views on Dublin’s retail sector and the outlook for the future.

Article by Dublin Economic Monitor 

50 City Quay

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With works now complete, we are pleased to welcome Greenlight Reinsurance as the first occupier of #50CityQuay, the latest company to join the #WindmillQTR. With two further floors currently reserved, we have one ‘own door’ office floor available to lease (1,313sq.ft). Please contact Lucy Connolly or Ros Tierney for further information on 01 647 7900.

Lands at Main Street, Dunboyne, Co. Meath

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Client: St. Finian’s Diocesan Trust

The Brief: The Parish of Dunboyne identified lands adjoining St. Peter and Paul’s Church as being surplus to their requirements and as a potential means of raising funds for the Parish, particularly in the face of the financial challenges posed by Covid-19. Bannon, as joint agent, were approached to provide advice on the optimum method of disposal and how to maximise the potential of the lands, given our previous experience and expertise with the disposal of lands owned by religious institutions. The surplus land, extending to 3.54 acres, included a surface car park which was used by parishioners and church goers and needed to be replaced/relocated.

Our Solution: An alternative car park location was identified in conjunction with the design team on the lands to be retained by the Trust.  Potential purchasers were provided with the specification of the proposed car park and were requested to incorporate the provision of the new car park on behalf of the Trust as part of their bid proposals.

The outcome: Following a competitive bidding process the property was transacted at a price substantially higher than the guide of €2.5m. Furthermore, the purchaser has contractually undertaken to complete the proposed new car park, subject to planning permission, on behalf of the vendor to the required specification. This means that the responsibility, and more importantly the substantial costs of project managing and overseeing a substantial works programme, has been removed from the Trust.

Testimonial: “St. Finian’s Diocesan Trust engaged Bannon as a joint selling agent in respect of the lands at main Street, Dunboyne, Co. Meath. We found Bannon to be thoroughly professional in their approach, and their market knowledge in this sector contributed greatly to achieving a successful sale.”

Fr. Patrick O’Connor.

 

At a Glance: Investment Market Q3 2021

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The Bannon Capital Markets snapshot highlights that the Retail Sector has finally emerged from the shadows at 14% of Q3 turnover of €794m …..but PRS remains the dominant player @ 50%. While Q3 was always going to struggle to match the pent up demand that emerged in Q2 @ €1.5bn, the outlook remains very strong. There is approx. €1.3bn on the market or at agreed stage which leaves our projection of €4.5bn for 2021 intact, an annual out-turn that will only have been surpassed once (in 2019)!

Shop Local

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The retail industry in Ireland employs c285,000 people. That is 12.5% of the working population. As leaders in the sector, we are very proud at Bannon to manage over 50 shopping destinations across the country. These destinations are home to over 1,100 businesses who in turn employ 10’s of thousands of local people. Supporting trade locally is supporting your local community. As we reset after COVID, make the right choice, shop local.

At a Glance: Office Market Q3 2021

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Take up for Q3 has exceeded 460,000 sq.ft. across 53 transactions. This represents a 92% increase on Q3 2020 but more importantly a 26% increase on Q3 2019 (pre covid).

This quarter has seen a significant jump in activity in the suburbs, particularly in the South Suburbs which accounted for 41% of all transactions.

As we enter Q4 there is over 1,000,000 sq.ft. reserved, this coupled with an increase in active requirements and the continuation of a phased return to the office should bode well for the office market for the remainder of the year.

THE EVOLUTION OF THE OFFICE SECTOR

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The ‘Office’ has featured heavily in the press over the past 18 months and indeed in everyday conversation, as working from home became a necessity for most office-based employees. Countless articles and blogs have been published with sensationalised headlines such as “What will the office market look like after the great remote working experiment?” to “Productivity of remote workers could determine the fate of the office market”.

Our view is that the office will now assume a wider function with a more consolidated, improved, and focussed environment to manage the challenges of hybrid working and employee engagement going forward.

Over the last 6 years, Irish office developments have evolved considerably with numerous exceptional schemes being delivered. These buildings have attracted leading global firms to Dublin in particular and the expansion of many more as they continue to increase their presence and EMEA HQs. Due to the new standards set by these firms, occupier expectation has increased which has resulted in developers placing more emphasis on emulating what the tech sector has traditionally offered to their employees: amenity, a perk, a perceived life work balance. They have achieved this through the accumulation of amenity-based facilities such as: high end shower and bicycle facilities, concierge services, tenant events, better reception areas, coffee docks and townhall spaces. This together with improved building standards and environmental and sustainability credentials coming more to the fore has given rise to the creation of world class and award-winning office buildings in Ireland.

However, the office sector is about to enter a new phase. Traditionally offices required a centralised location which has been challenged by technology. Prime offices were traditionally clustered around transport infrastructure in a central business district where multiple advantages of proximity to transport, telecommunication infrastructure and labour combined to attract a premium from occupiers, but technology is challenging the need for multiple office functions to take place in a centralised location. This need must be replaced with desire. The user of the building now places more focus on it being a positive environment for their business and their teams.

Like the revolution that has taken place in the retail market where the ability to shop online challenged traditional assumptions on the functionality of real estate, investors in the office sector must adopt an experience focussed strategy. The nascent breakthroughs the sector has made recently to enhance user experience must be expanded upon, implemented at an early stage in the development process and maintained through a proactive management regime.

As real estate’s function evolves, how do we deliver a successful solution for this next phase in the evolution of the office? As mentioned previously User experience is key and this can be achieved through many innovations. These changes do not have to be seen as challenges but as opportunities to be proactive and differentiate a proposition from that of their competitors.

Through Bannon’s extensive property management portfolio and experience in working as design consultants on several large new schemes, our role in working with investors and developers on identifying and enhancing the user experience for office occupiers and their teams has come into sharp focus.

For the investor the asset cannot be just about place making or achieving optimal rental outcome. An investor must consider it as a longer-term play by exploring tenant optimisation i.e. perhaps leasing a portion of the scheme at lower rents to amenity-based occupiers to carefully coordinate a desired aspirational environment. Correct implementation of property and asset management functions is fundamental, they are key to ensuring the functionality for their occupiers from both a corporate and personnel perspective. Communication with occupiers is essential as creating positive experiences for users of the buildings will in turn lead to greater loyalty and enhanced values.

As we move closer to a return to the office in whatever form, recruitment and retention will continue to be the driving force in office acquisitions. Therefore, to adapt to a hybrid model, promote productivity and engage with the ‘new employee’, the office needs to evolve to reflect what people want to use every day. The era of passive office investment is over.

Lucy Connolly is a Divisional Director at Bannon.  She has 15 years’ experience acting for a wide variety of private clients and companies in relation to commercial property, office acquisitions, sales and lettings. Contact Lucy by email on lconnolly@bannon.ie

 

 

 

 

 

 

 

 

Cracking the Sustainability Code needs more action and less Greenwashing!

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The function of all forms of real estate and the specific requirements of its users continues to change at pace. The most significant factors driving this evolution are non-financial – Environmental, Social and Governance (ESG) requirements.

At Bannon, we are seeing a profound shift from clients towards more sustainable practices. With environmental issues coming to the fore globally and a particular focus of the impact on the real estate sector, Bannon has been proactive in applying innovative and market leading initiatives across assets within our portfolio.

In simple terms sustainability means meeting our own current needs without compromising the ability of future generations to meet their own needs. This encompasses the economy, society and the environment and is often referred to as profits, planet and people.

We know that ESG and sustainability related innovations need to be adopted into every aspect of the management of real estate. Given the scale and variety of assets under our management we are acutely aware of the positive impact changes we implement will have on, the environment and the users of our clients’ buildings.

In partnership with our clients, we have implemented over 40 specific sustainability initiatives in the last 5 years. These initiatives will remove a cumulative 500,000 kg of carbon dioxide annually.

A small sample of the sustainability innovations implemented across our portfolio include:

  • Procurement of electricity from 100% renewable sources through our partnership with Electric Ireland. Bannon procures approximately 17 million kWh of electricity per annum from 100% renewable sources. This is the equivalent of removing 5,456 cars off the road per annum.
  • We have recently secured the option of procuring 100% green gas from sources that utilise agricultural waste for production.
  • We have an ongoing policy of replacing traditional fluorescent/incandescent lights with energy efficient LED lights across our assets.
  • Installation of Electrical Vehicle (EV) charging points in several shopping centres, retail parks and office developments.
  • Rainwater harvesting on shopping centre and office block roofs.
  • Installation of PV panels on assets roofs to generate renewal electricity. The technology in PV panels and renewable energy is improving constantly. Bannon have recognised that green energy is the future and is looking at how this technology can be utilised across our portfolio.
  • Installation of Beehives. Bees play a vital role in creating a healthy environment. Bee keeping projects help to support the pollination of the local green spaces and add enhanced ecology to the locality. In addition, they provide healthy nutritious honey!

The focus on sustainability has numerous benefits to all stakeholders and wider society. This ranges from lowering carbon emissions into the atmosphere to a reduction in costs for users of assets. Simultaneously sustainability initiatives provide added value to the assets for investors.

It is very easy to pay lip service to the latest trends in the industry and not take action to back these up. In order to achieve meaningful change, sustainability has to now be at the fore of real estate management. Bannon has recognised this and will continue to work in partnership with all stakeholders to make sure we continue the progress already made.

William Lambe is a Divisional Director with the Property Management team at Bannon.

The Property Management team in Bannon oversees a portfolio of 75 assets for a range of institutional, private equity and private clients.

Consumers prefer real-life shopping experiences, says leading Irish retailer

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Retail is back and it’s here to stay, says Christine Dolan of Quayside Shopping centre in Sligo Town.

The centre manager believes that the majority of Irish consumers prefer the social experience of a trip to the shops over the convenience of e-tail.

She told the All-Ireland Business Times that Quayside is busier than ever.

“I think people have missed coming into the shops”, she said. “It’s a totally different experience to shopping online.”

“People love the social aspect of a day out shopping and I think most people are sick of the virtual experiences – there are a lot of people who have been quite lonely through the pandemic and you can’t beat meeting up with friends for a lunch date while having a browse through the shops.”

“There’s a great buzz around at the moment and people are starting to mix again and enjoy themselves.”

A 2020 report by Deloitte found that retail is Ireland’s largest industry and the largest private sector employer, employing almost 300,000 workers – with three in four of those employed based outside of Dublin.

Quayside Shopping Centre opened its doors in 2005 as the largest shopping centre in the northwest of Ireland.

With 130,000 feet of floor space the centre boasts 43 retailers including TK Maxx, Lifestyle Sports and Next.

Quayside lost two retailers over the pandemic, one of them was a Carphone Warehouse store which was a casualty of the Group’s decision to close 80 stores in Ireland last year.

Christine revealed that units have since been filled by two new tenants with more set to come on board.

While Christine admits that competing against online retailers will be a tough challenge in the years to come, she is not worried about the long term future of her industry.

“What we’ve proven here time and time again is that we are resilient.”

“We’ve been through a recession and we’ve come out stronger on the other end so I have no doubt that we will get back to where we were pre-pandemic.”

“In fact, I think we’ll be in a better place.”

According to the Central Statistics Office’s Retail Sales Index retail sales increased by 3.3% in June this year compared to May on a seasonally adjusted basis. On an annual basis, retail volumes were 10.6 per cent higher than in June last year.

Interestingly the retail sales figure for June this year was 13.4% higher when compared to two years earlier, before the Covid-19 pandemic.

Quayside Shopping Centre recently landed its third Business All-Star Accreditation in recognition of its contribution to retail in Ireland.

Reacting to the news, Christine said: “I am delighted to be part of an ambitious All-Star Business. To be accredited for the third year in a row is a huge honour and I see it as recognition of the hard work that goes on behind the scenes.”

Quayside’s focus over the next few months is to promote the “shopping centre experience” and Christine revealed that the centre will be introducing an initiative to help local craftspeople and creators.

She said: “We have plans to relaunch our very successful Christmas markets and hope to do this a little bit early this year. The markets provide a wonderful opportunity for local traders who may have been out of work the last while and want the chance to set up a pop up shop or trading stall.”

“We really want to celebrate with our customers and give something back to the local community this year.”

To learn more about Quayside Shopping Centre Sligo, visit their All-Star showcase page here.

Article by All – Ireland Business Times

Five Lamps Spar store guiding at €900,000.

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Five Lamps Spar store guiding at €900,000.

Ros Tierney of Bannon says: “We expect to see significant interest from pension investors. This is a high-profile, resilient property with a tenant who has performed strongly throughout the Covid-19 pandemic. The investment offers the purchaser an attractive yield and a long lease term.”

My Job: Neil Bannon

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In a wide- ranging feature for “My Job” in the business section of today’s @IrishExaminer, our founder and executive chairman @NeilBannon talks about the the importance of sustainability and what it means in practical terms, how clients are seeking to leverage the firm’s market leading expertise in Retail and apply it to a new user experience for the office.

He believes that there is a need for a big reset in how we imagine the office, moving it from being merely a functional space with a desk to a new proposition where it is an experience-led, productive, enjoyable place to create, collaborate and engage with colleagues.

Neil also talks about prospects for Cork and its hinterland plus how – as Ireland’s largest domestically owned Commercial Property Consultancy in a market dominated by global brands – our firm not only succeeds, it thrives.

Thanks to John Daly at The Irish Examiner for the opportunity.

Take a look at the link below:

My Job Neil Bannon

Executive Chair: Neil Bannon, Executive Chairman of Bannon Commercial Property I Newstalk

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We were delighted to hear our Executive Chairman Neil Bannon interviewed on Executive Chair, part of Newstalk’s “Down to Business” radio show on Saturday. Neil and Bobby discussed the big changes to the nature of the Office and how it will move from being functional to experiential. He provided the valuable insight that Investors and Employers are now going to be more concerned about the experience of being in the office. It will no longer simply be a place with a desk but instead somewhere you look forward to visiting in the new hybrid working world.

As a result, he mentioned that Bannon had seen a notable increase in clients seeking to have the firm leverage our market leading Retails skills and apply them to the Office.  Other topics covered included how Neil’s Law degree helps with complex lease and purchase negotiations, setting up Bannon with his father Joe and how an independent, Irish owned business, excels at competing with multi-national competitors in this market.

Take a listen…..

https://www.newstalk.com/podcasts/down-to-business/executive-chair-neil-bannon-executive-chairman-of-bannon-commercial-property

CPOs – TWO SIDES OF THE COIN

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In Irish history, there have been numerous examples of the presiding Government instigating a Compulsory Purchase Order (CPO) to implement national projects.  Intentions being for the future development of the country and public interest.  A Government Minister or Acquiring Authority is required to seek a CPO from An Bord Pleanála and in contentious cases such an order can be expedited to provide a clear pathway and certainty around the delivery of a project of national importance.

The rules for the assessment of compensation for land taken on foot of a compulsory acquisition, generally provide that the value of land shall be taken to be the amount, which the land if sold in the open market by a willing seller, might be expected to realise.  Compensation will also deal with issues such as severance and disturbance to remaining landholdings.  The characteristics and attributes of the property are considered as part of any assessment of compensation payable to the landowner.  If zoning is in place for residential development for example, the potential of that development and the requirement for much needed housing will be reflected in the compensation payable.

But CPOs are not just about money.  The decisions and process involved can be emotive.  There are many stakeholders to consider and objectives to be met.  In some cases there is merit in considering a CPO for the successful delivery of projects of importance.  However, for every project that needs to be realised, there are landowners who need to be accommodated.  Many have a long history with their property, and they hold sentimental attachment in addition to financial value to them.  It is never a simple choice to sell that asset or be forced to sell it.

Depending on the project, such compensation sums for land acquisition may be considered relatively modest given the overall cost of the project.  However the personal cost to landowners may be significant as they can be dealing with the compulsory acquisition process for years before reaching a conclusion.

Acquiring authorities must carefully navigate the legal process, taking the obligatory steps with fairness and consideration. Landowners must equip themselves with the knowledge and understanding of the process and the impact on their livelihood. Specialist advice is essential on both sides to understand the true value of the property, both as a single property and as part of a wider scheme.

Our small island will continue on its path of growth and development.  Our challenge is to balance how we use the land we have for the good of our people, both users and owners.

Niall Brereton BSc MRCIS MSCI is a Registered Valuer and experienced Compulsory Acquisition Practitioner with Bannon Chartered Surveyors and Property Consultants.  Niall has advised on multiple CPOs, acting primarily for individual claimants and corporate landowners.  

 Bannon is currently advising landowners in respect of the following CPO projects:

 https://www.corkrdo.ie/major-schemes/m28-cork-to-ringaskiddy-project/

 https://busconnects.ie/

 http://www.donegal-ten-t.ie/

 https://www.foyneslimerick.ie/

 

How do we accommodate the office of the future?

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Covid-19 and Sustainability awareness are changing Ireland’s commercial property market

By Neil Bannon, Executive Chairman, Bannon

Opinion piece published in the Property Plus supplement, The Business Post, Sunday, July 25, 2021

The Commercial Property market will look very different in the coming years due to two game-changers – Covid and its permanent impact on the World of Work and the little-known but the highly important Environmental, Social and Governance (ESG) system that is the benchmark for assessing the environmental impact of real estate.

The Future of the Office – What’s Next?

The reality is that Covid has changed the world of work for both employers and employees. The office of Now and the Future needs to be accommodated in more sustainable, user friendly buildings, where wellbeing for its users is prioritised and consideration is given to how occupiers and users interact with and experience the building – both internally and externally. Also, we believe that, where possible, buildings should feel like an integral part of local communities and neighbourhoods and not appear “stand alone.”

In the past six months especially, we have noticed a spike in demand from clients who are talking to us about taking our market leading expertise in retail from such buildings as Dundrum Town Centre, Pavilions S.C. and The Square, Tallaght and applying those insights into new work environments. Unlike many players in the Irish market who are international, Bannon is a local business with deep roots here. We understand the “real world” culture of the market and understand the importance of real estate delivering long term returns for our clients. However, we believe this can be done in a way that simultaneously creates better places to work and reduces the impact on the environment.

One of the biggest changes to the office is that it is no longer just a place with a desk but has become a destination in itself. To many employees now used to months of focused home working and with limited opportunities for social interaction, a day at the workplace has become an event, a chance to see colleagues, be inspired, collaborate and connect. In this context, smart offices that use digital sensors to monitor and respond to factors such as occupancy, air quality, natural light levels are in high demand as are those with sustainable office design, and the flexibility to accommodate Hybrid workers.

Last, but certainly not least, with health and wellbeing being linked directly to productivity and profitability, offices now need to be a place of safety and empowerment for users.

More focus is needed on the entire user experience. From the moment when someone leaves their house, to arriving at their office, what does that entire journey look like?  Is it positive? Do they know where the local barber shop is; the chemist; the coffee shop, the fundamental services?  When they enter the car park, is it well lit? Do they feel safe? Does their phone signal work?  There are a lot of very personal experiences that impact whether your day is good or bad and I think that the corporate office market needs to really focus and learn from the retail sector which has been doing this for decades, in terms of making sure that every step of the journey is a positive step and a value add. That’s something we can change a lot in terms of the office.

ESG – delivering investor value, sustainably

With the environmental impact of real estate now increasingly important to investors, the ability to monitor, benchmark and improve the performance of buildings has become a fundamental objective for its clients. In Ireland, Bannon was an early adapter of the Investor-driven Global ESG Benchmark for the Real Estate Sector.

This is setting the benchmark for Environmental, Social, Governance (ESG) across the sector. Investors are now concerned with additional real estate performance metrics, such as energy consumption, greenhouse gas emissions and tenant and community engagement. With annual data updates, it will have a significant impact on property valuations and sustainability.

Ultimately, Bannon matches businesses with locations from which they can thrive. Our objective is to create longer term sustainable returns in property which means a greater focus on the function of buildings through active property and asset management and intelligent consultancy services rather than just the traditional focus of our industry Acquisitions, Sales and Lettings.

Sustainability has been one of the most over-used words in the property industry for several years now. It was easy to say but difficult to prove. What recent ESG legislation has done is create the platform that allows investors to see validated sustainability credentials for any property within their portfolio or indeed for something new which they wish to acquire.

Article by The Sunday Business Post

 

At a Glance: Office Market Q2 2021

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The Dublin office market has shown significant signs of improvement and given the large quantity of reserved space the second half of the year looks very positive.

At a Glance: Investment Market H1 2021

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Despite the backdrop, another very strong quarter in the Capital Markets with the private rented residential sector leading the charge as usual. Based on pipeline supply 2021 turnover looks set to be the 2nd strongest year of all time! See Bannon quarterly snapshot.

Hines completes acquisition of final phase at Chatham & King

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International real estate firm Hines has formally acquired the second phase of Chatham & King, a new high-profile mixed-use scheme next to the Gaiety Theatre on South King Street in Dublin city centre.

Hines’s acquisition of the 3,950sq m (42,500sq ft) portfolio marks the culmination of the €165 million deal it agreed with US private equity giant Lone Star for the wider Chatham & King development in 2018. In acquiring the scheme, Hines fended off three rival bids. Two of the competing offers came from German funds, while the third bid came from the billionaire founder of the Zara fashion chain, Amancio Ortega.

In securing ownership of the development, Hines gained immediate control of a mixed-use building with retail units comprising 3,112sq m (33,500sq ft) occupied by Zara, H&M and Warehouse, along with 2,879sq m (31,000sq ft) of overhead office space occupied by data analytics management firm Qualtrics as its European headquarters.

The second phase, which has now been completed by Lone Star, comprises six residential units, five retail units totalling 1,486sq m (16,000sq ft) and 2,461sq m (26,500sq ft) of office space which will be occupied by Qualtrics. The €40 million cost of developing the new building on Chatham Street and Clarendon Row was included as part of the €165 million deal agreed on behalf of Hines European Core Fund (HECF) in 2018.

Negotiations

Hines says that negotiations are at an advanced stage on each of the five new retail units, which range in size from 46sq m (495sq ft) to 1,178sq m (12,680sq ft). The incoming tenants will sit alongside the existing tenants, which include Zara, H&M and Apple-reseller CompuB, which recently signed a new lease for a 315sq m (3,400sq ft) retail unit on South King Street.

The Chatham & King scheme has a prime location next to Grafton Street and St Stephen’s Green, and sits within close proximity to the Westbury Hotel and the new Dublin headquarters of the European Parliament, which is scheduled for completion in November 2023.

Simone Pozzato, managing director and deputy HECF fund manager at Hines, said: “The acquisition of phase two of Chatham & King completes the final element of this portfolio and marks the delivery of an LEED-accredited asset in the Dublin office and retail sector at an opportune time. The property is an excellent fit for HECF given its central location in Dublin, a city which continues to show strong economic growth.

“We are already encouraged by the promising engagements to date from some very exciting retail brands who would be ideally suited to this prestigious shopping district. We hope to have further announcements in this regard in the near future.”

Peter Lynn, director with Hines Ireland, added: “We are delighted to make this timely announcement as Dublin city centre continues to reopen and as Chatham Street itself has recently undergone a significant transformation with Dublin City Council’s pedestrianisation programme. Chatham & King is a high-quality addition to this historic street and our new retail spaces will represent a significant enhancement to the city’s most fashionable shopping district. We are also equally excited to be working with Qualtrics as our lead office occupier as they continue on their growth story.”

Article by The Irish Times

Consumer Sentiment Index

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Irish consumer sentiment is at a two-year high following a modest 1.6% monthly increase in June. This increase brings the index back in line with the 25-year average of the series suggesting sentiment has been normalised. This is further supported by the fact that June marks the fifth successive monthly increase in the index, the first time that has happened since the beginning of 2007. These results suggest that Irish consumers are becoming less concerned about their current circumstances and less fearful about the future which bodes very well the retail sector. Furthermore, trends over the past decade show consumer sentiment as a very accurate leading indicator of retail sales.

Bannon Shopping Centre Footfall (2019, 2020, 2021)

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There is an air of positivity coming from our shopping centre & retail park management teams across the country. It has been great to see the rebound in footfall since full reopening of our portfolio on the 17th of May last. The first three weeks since reopening have seen weekly footfall jump back to 86% of the levels seen in 2019. What’s much more significant is the number of retailers reporting May 2021 sales information (a total of 14 days) being ahead of May 2019 (31 days). There is no question that retailers need to see a sustained period of brisk trade but the data so far is pointing in the right direction.

Retail park portfolio’s €78m sale tests investor appetite

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With online shopping having come into its own following the unwelcome arrival of Covid-19, the sale by New York-headquartered Marathon Asset Management of three of Ireland’s best-known retail parks is set to test the post-pandemic appetite of investors for traditional bricks-and-mortar retail.

The Parks Collection is being offered to the market individually or as one lot by joint agents Cushman & Wakefield and Savills at a guide price of €78 million. The portfolio comprises Belgard Retail Park in Tallaght, Dublin 24, the M1 Retail Park in Drogheda, Co Louth, and Poppyfield Retail Park in Clonmel, Co Tipperary.

While the sale of the entire offers the prospective purchaser the opportunity to secure a collection of strongly-performing retail parks and an attractive net initial yield of 8.43 per cent, the portfolio’s assets are expected to see interest on an individual basis also.

Belgard Retail Park, for its part, is regarded as one of the foremost retail parks in the capital. Located on the Belgard Road in Tallaght and 11km from Dublin city centre, the scheme comes for sale fully-occupied and anchored by B&Q, the largest home improvement and garden centre retailer in the UK and Ireland. Other occupiers include Homestore & More, Dealz, Carpet Right, Halfords, Right Style Furniture, Burger King and Starbucks.

While the scheme currently extends to 12,728sq m (137,000sq ft) with 482 car parking spaces, it has planning permission for an additional retail warehouse unit of 2,404sq m (25,877 sq ft) over two levels with 1,409 sq m (15,166 sq ft) of ground-floor space and 995sq m (10,710sq ft) of retail warehouse/storage space at mezzanine level.

The total current rent is about €3.13 million per annum with a weighted average unexpired lease term of 7.3 years. B&Q contributes around 67 per cent of the income on a lease until 2028 with an upward-only rent review clause.

The M1 Retail Park is located 3km west of Drogheda town centre and just off the M1 motorway connecting Dublin and Belfast. It comprises a mix of retail, office and leisure accommodation extending to a total of 24,805sq m (267,000sq ft), along with 600 car-parking spaces. The majority of the development is taken up by retail and leisure (89 per cent) and is anchored by Woodie’s DIY who occupy 4,885sq m (52,585sq ft). The park’s other tenants include Smyths Toys, Sports Direct /Brand Max, Dealz, Equipet and EZ Living amongst others.

The total current rent is €2.44 million per annum with a weighted average unexpired lease term of 8.4 years. Woodies (with lease guarantees from Grafton Group plc) contributes around 40 per cent of the income on a lease until September 2030 with upward-only rent reviews.

The scheme also includes Mellview House, a four-storey building comprising 25,048sq ft of office space, a 30,483sq ft gym at ground floor, basement and mezzanine levels operated by Gym Plus and a number of other smaller retail units. Another building known as the Pavilion is home to Costa Coffee and TC Matthews with a recent new letting to Lanu Medi Spa.

An additional site adjacent to M1 Retail Park also forms part of the Parks Collection sale. The land extends to 27 acres and comprises three adjoining plots with proposed zoning under the Draft Louth County Development Plan 2021-2027 for three uses, namely ‘A2 New Residential’, ‘ C1 Mixed Use’ and ‘ B4 District Centre’.

99% occupied

Poppyfield Retail Park is located 2.5km from Clonmel town centre at the junction of the Cahir Road and the N24. Developed in 2004, the scheme extends to 12,821sq m (138,000sq ft) and comprises a mix of 14 retail warehousing units, a neighbourhood centre and 393 car-parking spaces. The park is 99 per cent occupied and anchored by Woodie’s DIY (with a lease guarantee from Grafton Group plc) and SuperValu. Other high-profile tenants include Harry Corry, Maxi Zoo, EZ Living, World of Wonder and DID Electrical. The neighbourhood centre is occupied by Costa Coffee, Sam McCauley, along with a hair and beauty studio and fish-and-chips operator. KFC also have a drive-through at the entrance to the park which does not form part of the sale.

The total current rental income is €1.43 million per annum and the weighted average unexpired lease term is seven years. Woodie’s and SuperValu contribute around 52 per cent of the income, and have seven and eight years remaining on their respective leases.

Marathon Asset Management acquired the M1 and Poppyfield parks originally as part of a larger portfolio in 2014, which also included The Park, Carrickmines; Lakepoint Retail Park, Mullingar; and the Four Lakes Retail Park in Carlow. Belgard Retail Park was acquired separately.

Marathon has undertaken significant asset management and phased disposal of these assets since then. The latest sale from its Irish retail portfolio was completed only this week and saw a private high net worth investor paying close to €7 million to secure ownership of Lakepoint Retail Park in Mullingar.

The scheme, which is anchored by Woodie’s DIY, is generating total rent of €516,000 per annum giving the purchaser an initial return of just under 7 per cent. The deal was brokered on Marathon’s behalf by Rod Nowlan of Bannon while Declan Bagnall of Bagnall Doyle McMahon represented the purchaser.

Article by The Irish Times 

Neil Bannon on Retail Recovery

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One of the recommendations in our recent report on City Centre retail for Dublin City Council was to improve connectivity between the Retail Core and the Office and Cultural hubs within the City making it easier for City workers and tourists to connect to the shopping areas. Delighted to see the works taking place on Merrion Row and Baggot St which will both improve the pedestrian experience and facilitate on street dining.

Neil Bannon on the Retail Sector

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Dublin Town reporting footfall in the City Centre at 87% of 2019 levels last Saturday, given the lack of Tourists that’s a very encouraging recovery. It will be interesting to see which retailers benefit most from the return of the consumer.

Changes to Pension rules out Commercial Property Purchases

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Following the government’s transposition of IORP II, any new One Member Arrangements (OMA) will now be largely prevented from borrowing for their investments and be required to hold at least 50% of their investment in regulated markets e.g. listed shared and/or bonds.

Commercial properties had been an attractive option for OMA pension funds which could buy a €2.0m property with a €1.0m pension pot and borrowings. The income could be applied to the loan to allow the pension to grow to the €2.0m cap without relying upon growth. The combination of restricting borrowings and the 50% cap has the nett effect of limiting property purchases to €0.5m largely ruling out directly held commercial real estate.

Happy to discuss the implications and opportunities further.

#bannon #bannonconsultancy #bannonresearch

 

Slane lands with residential and commercial potential guiding at €3.75m

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Agent Bannon is guiding a price of €3.75 million for a 46-acre landbank strategically positioned on the Slane Road between the M1 motorway and Drogheda town centre.

The property, which is in agricultural use currently, is expected to see strong interest from both residential and commercial developers, given its potential to accommodate a variety of uses. The entire holding is zoned “mixed-use (C1)” under the terms of the draft Louth County Development Plan 2021-2027. The objective of this zoning is “to provide for commercial, business and supporting residential uses”.

The final county development plan is expected to be adopted by the end of 2021. According to the draft plan, Drogheda is earmarked to further expand on its status as the largest town in Ireland with a target population of 50,000 by 2031. The town has been designated as a self-sustaining employment centre on the Dublin-Belfast Economic Corridor.

Well placed

The subject site is well placed to benefit from this expected growth thanks to its location. The lands are situated on the Slane and Mell Road, with the M1 motorway (junction 10) to the northwest and Drogheda town centre to the southeast. The M1 Retail Park, which is occupied by Woodies, Smyths, Sports Direct and Dealz, is situated less than 500 metres to the northwest.

Niall Brereton, director at Bannon, said: “This is an excellent opportunity to develop a mixed-use scheme of scale, subject to planning permission, at a strategic location close to Drogheda town centre and the M1 motorway, within a town which has been identified as a regional growth centre.”

The property is being offered for sale by way of tender with a guide price of €3.75 million. The last date for receipt of tenders is noon on Thursday June 10th.

Article by The Irish Times 

Bannon Shopping Centre Portfolio – Footfall (2019, 2020, 2021)

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In a normal year we welcome in excess of 100 million people into Bannon managed shopping centres. As is evident from the chart below the last 12 months have been very different. That said we remain hopeful that the end is now in sight and we look forward to seeing the portfolio back to full capacity in the near future.

After the pandemic: in Dublin’s bare city

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After the pandemic: in Dublin’s bare city. Our streets must be reimagined to entice visitors rather than cater to workers. Bannon advises on this in The Sunday Times.

At a Glance: Office Market Q1 2021

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Covid 19 and level 5 restrictions have continued to impact the Dublin office market this quarter with just 14 transactions recorded across the sector.
As the vaccination rollout continues we are seeing a notable increase in market activity and re-activation of requirements, as companies plan for a return to the office. This is highlighted further by the increase in office accommodation reserved, which currently stands at over 500,000 sq.ft. across the capital.

At a Glance: Investment Market Q1 2021

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Despite the backdrop of Covid 19, Q1 turnover was a healthy €1.22bn, with 58% weighting to the residential sector. Strong demand in the sector for good product continues on a standing asset and forward commit basis. With restrictions on travel / viewings still in play the more traditional sectors have had a subdued quarter but should rebound later in the year. If you wish to discuss the quarter in more detail or general investment, please contact Rod Nowlan or David Carroll.

Bannon Consultancy Retail Pulse 2020 – A Rollercoaster Year

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We are delighted to share our latest Consultancy Retail Pulse for 1st March 2021. Should you wish to discuss any retail market or property queries, please don’t hesitate to contact us.

Neil Bannon on the Retail Sector

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The dramatic improvement in the balance sheets of Irish Consumers in the last decade is astounding, savings are up 35% and debt is down 33%, a €70bn nett turnaround. The potential for a positive impact on the retail sector post reopening is clear, the question is where will the money be spent. We are modelling the potential impact on the different retail sub-sectors and expect to see a very different outturn to the 2013 recovery.

Meath site zoned for residential and retail guiding at €2.5m

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Joint agents CBRE and Bannon are guiding a price of €2.5 million for lands zoned for the development of retail and residential in the commuter town of Dunboyne, Co Meath.

The subject site extends to 3.54 acres and is located at the centre of the town, to the rear of St Peter and Paul’s church and immediately adjacent to the new SuperValu development. Dunboyne train station is situated 1km from the property. The front section of the site is currently in use as a car park, while the rear section is under grass.

The site is located in an area zoned “B1 town/village centre” under the draft Meath County Development Plan 2020-2026. It is also identified as a “retail opportunity site” OS 1, under which additional retail development for the town could be accommodated. Residential development is also permitted under the current zoning objective.

Dunboyne is a well-established residential location, with an abundance of amenities including sports clubs, shops, cafes and restaurants. There are several schools in the town, including Dunboyne Primary School, Gaelscoil Thulach na nÓg and St Peter’s College secondary school.

There are a number of employment hubs located within close proximity to the town, including Dunboyne Business Park, the IBM campus in Mulhuddart, Blanchardstown and Damastown Industrial Park, MSD and Facebook Clonee.

Dublin city centre is located just 18km from Dunboyne and is readily accessible via the M3 motorway. In terms of public transport, Dunboyne train station offers a regular service to Dublin each day, with a travel time of about 30 minutes to the Dublin Docklands station. There are also in excess of 30 Dublin Bus services per day.

Darragh Deasy of CBRE’s development land division says: “This is a rare opportunity to acquire a development site in one of Meath’s most desirable residential locations. The subject site has terrific development potential, subject to planning permission, and should appeal to a wide pool of purchasers.”

Niall Brereton, director at Bannon, adds: “Dunboyne has been identified as a strategic development area within the Dublin Metropolitan Area Strategic Plan. Given the central location of these lands, they offer undoubted potential to develop a mixed-use scheme, subject to planning permission.”

Article by The Irish Times 

Retail in Dublin City Centre 1790-1990

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Are you interested in the history of some of Dublin’s past and present retailers?

Well, the Central Library are hosting a new series by Dublin City Council Historian in Residence Dr Mary Muldowney which takes a look at retail streets like Henry Street and how they have changed over the last 100 years or so. The series features Dublin favourites Arnotts, Clerys, Roches Stores and other major retailers that have disappeared; as well as featuring the small businesses.

In her opening talk on 8 February, Mary introduced us to the history of retail in Dublin City Centre.

The next talk, Shopping in Dublin City Centre 1790-1990. Henry Street and the women who worked there is on 8 March at 7pm.

This lecture will take place on Zoom and, in honour of International Women’s Day on 8th March, it will focus on the women who ran and worked in the many retail businesses on Henry Street.

Article by Dublin City Council

Surveyor’s Declare

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Bannon is delighted to support the @scsi recently launched Climate & Biodiversity Emergency Declaration. The “Surveyor’s Declare” document is an important resource for Surveyors who have signed up in support of a framework for Surveyors who are committing to play their part in the climate change challenge.

At a Glance: Office Market 2020 in Review

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Dublin Office Market 2020 – in Review. Full market report to follow.

At a Glance: Investment Market Q4 2020

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Last minute residential deal tips market over €3bn.

Retail parks seize opportunity presented by High Street’s difficulty

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It’s difficult to imagine things getting any worse for the retail sector than they did in 2020. But the chief driving force behind the decline of investor interest began long before Covid-19 arrived. There has been growing concern in relation to the impact of online retail and changing consumer trends on the long-term supply-demand dynamic for the bricks-and-mortar format. Much of this has been imported from the US where retail supply is five times that of Ireland, and the UK where it is 25 per cent higher and undergoing a sustainability crisis.

While the relative performances of these markets may already have been up for debate, the impact of Covid has ended the discussion. By mid-March the sector became virtually un-investable due to Covid-related uncertainties attaching to rental payments being added to those longer-term occupational concerns. The consequence of this is manifest in year-end investment turnover figures where retail will represent a record low 2.5 per cent of an anticipated total investment market turnover of € 3 billion. This from a sector that represented 24 per cent of investment turnover for the last decade (to 2019), but descending rapidly from a high of 53 per cent in 2016 to a previous record low in 2019 of 9 per cent.

Unsurprisingly for 2020 High Street retail has been worst affected with Grafton Street top of the list experiencing a 66 per cent reduction in footfall for March to October. While the street’s footfall figures had been holding steady at 25 million for the last two years, the 2020 outcome will be closer to 13 million.

No surprise then that almost a quarter of the units on the street are effectively available. Henry Street performed a little better as did some of the other city’s high streets, but the tone is similar. Next in line were the “comparison led” shopping centres which, as a general rule, saw footfall collapse during the first lockdown and rent collections plummet below 35 per cent. However, they did improve quickly and were less affected by the second lockdown. The burden of the service charge costs of running these mall-based schemes was exposed during these periods and will be a key factor in assessing the risk of ownership of these asset types in the future.

The resilience of the grocery sector shone through. No surprise therefore that 65 per cent of the limited 2020 retail investment transactions were grocery deals. Similarly, smaller grocery-led schemes performed better and recovered quicker than major town centres but weaker covenant strength and holding costs affected net rental collections.

Low holding costs
The retail sector’s star performers, however, have been the retail parks. Indeed, in the case of the 15 retail parks under Bannon management (between nationwide lockdowns) car throughput actually increased year on year for the period with rent collection rates approaching 100 per cent and impressive turnover increases. Even where tenants were adversely affected, low holding costs relative to shopping centres maximised the net income return to landlords.

If this crisis has accelerated the sector’s movement to the “retail endgame”, then retail parks and their occupiers have risen to the challenge. In this regard we envisage this asset type, along with grocery, to be the most liquid and popular sector for the year ahead.

Outside of this and following both Brexit and an anticipated mid-January lockdown we foresee a post-vaccine period of rebuilding balance sheets and filling occupational voids. While this period could take 12 to 24 months, there is little doubt that the rebasing of the sector generally will attract new investors wishing to get ahead of the recovery. This will probably manifest as loan trades first with a focus on fundamentally-sustainable schemes and high streets at attractive yields with occupiers who have embraced the omnichannel experience.

More sophisticated investors will recognise the buying opportunity that Covid-19 presents, especially if valuers fail to acknowledge the vast differences in performance across the sector.

Rod Nowlan is investment director at Bannon

Article by The Irish Times

Bannon Commercial Property Consultants Ltd. Chooses Yardi Software for Asset and Property Management

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The Ireland-based commercial property practice will drive efficiencies in their property management portfolio and tenant management with the Yardi platform

DUBLIN, Ireland (16, November 20) – Bannon Commercial Property Consultants Ltd. (Bannon) will manage over 7 million square feet of real estate on Yardi® Voyager, a cloud-based property management and accounting platform. The firm will also adopt Yardi® Lease Manager for a comprehensive view of tenant activities and portfolio performance.

Lease Manager, part of the Yardi® Elevate Suite, offers extensive data and oversight options. Finance and asset management teams can visualise total number of deferrals and abatements and aging accounts receivable. Property management teams can oversee rent collection and tenant communications.

Bannon will also adopt the Yardi® Procure to Pay Suite, an end-to-end procurement solution that includes Yardi PAYScan® for paperless invoicing and VendorCafe® for centralised vendor management. CommercialCafe®, an easy-to-use, self-service tenant portal will digitalise tenant communication for Bannon. CommercialCafe enables tenants to make online payments, access lease records and manage service requests.

“We are looking forward to the benefits of a cloud-based property management solution. We provide a ‘best-in-class’ approach to outsourced property management with quality at the core and we see synergies in Yardi’s offering. The Voyager platform will ensure consistency and modernisation in the way we report and manage our clients’ assets,” said Richard Muldowney, director and head of finance at Bannon.

“Yardi continues to expand its presence in Ireland, one of the fastest-growing real estate markets in Europe. We’re excited to support Bannon with technology that will facilitate strategic growth,” said Neal Gemassmer, vice president of international at Yardi.

Learn more about how Yardi is supporting real estate and investment clients in the UK and across Europe.

 

About Bannon Commercial Property Consultants Ltd.

Bannon is the leading indigenous commercial property practice in Ireland with a particular emphasis and track record in the retail space. The firm currently has 75 assets under management. For more information on Bannon, please visit bannon.ie.

About Yardi

Yardi® develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, Calif., and serves clients worldwide from offices in Australia, Asia, the Middle East, Europe and North America. For more information, visit yardi.co.uk.

Shopping Centre Portfolio – Footfall

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In general the footfall across our portfolio is remarkably consistent every year, however 2020 is very different. We remain hopeful that people will shop with purpose when the restrictions are eased at the start of December.
Businesses across the country need a strong finish to the year and we can all help to make it happen.

Neil Bannon on the Imposition of Essential Goods

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The inconsistent and illogical nature of the imposition of essential goods only sales in retail across the country is causing serious damage to the sector.

We have reports from across the portfolio of local Jewellers who are operating on a Click & Collect basis being told to pull their shutter, a news agency being advised that can sell cigarettes and lotto tickets but not books or magazines, a florist being told to close who traded during the last (and more severe) lockdown.

The government needs to think about where this spend will go. A customer told they cannot buy a magazine or a book in a shop that is already open is one click away from redirecting spend from a small local business to Jeff Bezos

Neil Bannon – September Retail Sales

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September Retail Sales indicate that at least one part of the economy is definitely experiencing a K shaped recovery. The stellar numbers that continue to come out of the DIY sector (YOY: Hardware +27.6% YOY, Electrical +21.1% & Furniture +11.9%) contrast sharply with Bars which are predictably down 48%.

What’s interesting is that total value of retail sales was up 7.2% year on year which means Irish consumers spent a lot more this September than last year.

This was all before the lockdowns started again which if recent experience is anything to go by will exacerbate the K shaped nature of the market performance.

At a Glance: Investment Market Q3 2020

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David Carroll, Investment Director – “Q3 2020 turnover of €681m continued to illustrate the domination of PRS investment versus other asset classes with circa. 70% of value attributed to the sector. Covid-19 impacts continue to effect the supply and demand factors of traditional investment sectors. There is now close to €2bn of office product being marketed publicly and privately thus Q4 should provide some clarity on where investor appetite is at”.

At a Glance: Office Market Q3 2020

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Lucy Connolly, Divisional Director – “Covid-19 continued to impact the Dublin office market in Q3 with 230,000 sq.ft. of take up recorded across 29 transactions, bringing the YTD figure to 1.38M sq.ft. relative to 2.12M sq.ft. for the same period in 2019. Going into Q4, there is 360,000 sq.ft. of office accommodation reserved”.

Neil Bannon – Retail Sales

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As per the Retail Sales figures released by the CSO and our own experience across our retail park portfolio DIY & Household goods sales have been the stand out performer of the Retail sector since March.

Retail Parks continue to perform well with rolling restrictions on other retail outlets redirecting spend into home improvements.

Interestingly this is a sector with very low levels on pure online penetration although we have been actively engaging with a number of occupiers about facilitating their client and collect offer.

At a Glance: Office Market Q2 2020

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Lucy Connolly – Divisional Director – “The anticipated impact of covid-19 on the Dublin office market translated to a take up figure of 75,000 sq.ft. this quarter. We do expect to see a busier Q3 with over 700,000 sq.ft. of accommodation reserved, with some large transactions close to completing in the coming weeks. We commenced the quarter on a positive note with the recent announcement that Gilead are to create 140 new jobs following their letting of over 30,000 sq.ft. at North Dock”.

At a Glance: Investment Market Q2 2020

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David Carroll, Investment Director – “Q2 turnover of €430m reflected the impact of C-19 on the commercial market. 20 deals were completed with 78% of turnover attributable to just four transactions”.

At a Glance: Office Market 2019 in Review

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With 3 transactions in excess of 100,000 sq. ft. take-up reached an impressive 1.2m sq. ft. in Q4. This brings the year-end total to 3.29m sq. ft. across 204 transactions. Full report to follow.

At a Glance: Investment Market Q4 2019

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The strongest ever quarter for the Irish investment Market with total turnover for Q4 2019 reaching a staggering €3.76bn and total turnover for the 12 months of the year in excess of €7bn. To put the quarter in context it is higher than the entire annual turnover of the last cycle peak in 2006 of €3bn+ and annualised smashes this cycles 2016 peak of €4.5bn. PRS remained the most active sector accounting for 41% of transaction value. Full Report to follow.

Society of Chartered Surveyors - SCSI Ireland

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