Bannon, a national agency with a local touch

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The Bannon Property Management Team has continued its growth from 2022 with a number of new instructions across the island. Q1 of 2023 has started off on the same footing with a number of new hires across the surveying and accounts team.  Bannon now manages more than 1 in 4 of Irelands Shopping Centres & Retail Parks welcoming over 100 million customers every year. While the majority of our instructions are retail (Shopping Centres or Retail Parks), we also manage an increasing number of office buildings, most particularly in Dublin. This has required the team to focus on the sustainability aims of our clients and putting in place projects to achieve the goals.

The department has a 40-strong team of surveyors and accountants from 10 counties across Ireland. This is representative of the portfolio as we manage assets across all 4 provinces as we continue to grow our presence as a nationwide business.

The Bannon Head Office is based in Dublin, however, the firm adopts a hybrid working model for the Property Management Team. In several cases our surveyors live and work in the locality of the assets they manage.

The geographical spread of the Bannon portfolio and the surveyors who work with them, give us unique insights into the locality in which assets are located. Local knowledge is essential to ensure that the needs of local customers are met.

With recent instructions in Cork City and Cork County Bannon now has a major presence in the Cork market. This is in addition to new shopping centre management instructions in Waterford and Kilkenny.

If you want to talk to the Bannon team about managing a commercial property asset or are interested in joining Ireland’s fastest growing property management team, please check out www.bannon.ie.

 

Author:                 William Lambe, Divisional Director, Bannon 

Date:                     4th May 2023

 

Completely Retail Marketplace 2023

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Bannon Retail Team having a productive day at Completely Retail Marketplace. A lot of meetings and discussions on the Irish Retail Market. Expecting some positive news on leasing activity.

James Quinlan, Jennifer Mulholland, Darren Peavoy

Retail sales grow in Dublin for eighth consecutive quarter

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Neil Bannon comments ‘Another confirmation that the retail sector is defying gloomy predictions this time from Dublin MasterCard Spending Pulse. Sales are up YoY in all categories from Necessities to Entertainment. The data accords with results from the Bannon retail portfolio and indicates strong growth across the Country. Particularly interesting to see Household Goods holding onto and adding to the gains made in the pandemic with sales in the sector now 25% above where they were in Q 1 2020’.

Full Irish Times Article available here.

Dubray is now open on 39 Mary Street, Dublin 1

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Another store acquisition on behalf of Dubray opened their doors this weekend on 39 Mary Street, Dublin 1.

Petstop opening at Blackrock Village Centre

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We are very much looking forward to the latest Petstop opening at Blackrock Village Centre which has an extensive range of pet foods and accessories for all pet lovers.

Understanding Sustainability of Income is Understanding Retail Assets

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At Bannon we analyse two types of sustainability, environmental sustainability attributes and the sustainability of an asset’s income. Sustainability of income is important as this considers the ability of the Occupier of the asset to pay rent to the Owner based upon the business they carry out in the building. Gaining an insight into this allows an Owner to understand whether they will maintain or improve income on the occurrence of lease events such as break clauses and expiries and also assess how solid or otherwise their income is in the context of market conditions and the implementation of asset strategy. The asset class that gives an Owner the greatest opportunity to use this analysis is retail where the performance of the business within the shop is directly relevant to the stability of income the Owner receives. 

Understanding the strength of the rental income by analysing the trading and commercial performance of the rent paying occupiers puts the Investor in the strongest position to negotiate and regear lease terms, react to market requirements and devise and implement strategic asset goals. Bannon carry out rental sustainability analysis for schemes utilising our depth of retail asset and occupier specific data. The occupier’s current position will be further validated by their wider commercial performance and the effect both macro and micro economic conditions may have on the occupiers and their ability to perform. 

The sustainable performance of an occupier is a key consideration for maintaining and forecasting income over the period of ownership. This gives our clients a clear advantage is assessing the value of an asset and looking at acquisition opportunities. The value of retail assets, especially shopping centres, has been depressed for some time despite their proven track record of producing strong predictable cashflows. Adopting sustainable rental analysis allows our client to see past the negative sentiment and acquire income producing assets at low cost when compared to other real estate investments. 

A comprehensive understanding on a schemes rental sustainability can inform decision making when devising and asset strategy and inform cashflow forecasting. This can aide in de-risking cash flow line items for owners over their ownership period. Understanding rental sustainability can serve as a means of curating the schemes occupier mix and planning strategic initiatives. Overall, the ability to enhance the knowledge and understanding of income for the owner serves as a means to promote good asset management and to improve income over the term of ownership. 

If you would like to know more about Bannon’s approach to rental sustainability analysis and how it can strengthen your asset strategy, please get in touch @ Consutancy@bannon.ie. 

 

Author:                 George Colyer, Surveyor, Bannon 

Date:                     17th April 2023

 

Foot Locker to open new store in Dublin’s Ilac Centre

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Bannon are delighted to have been involved in delivering a new 13,000 sqft flagship #Foot Locker offer at Ilac Shopping Centre and an upsize and relocation to 6,000 sqft at Swords Pavilions Shopping Centre for clients Hammerson Ireland and Irish Life Assurance plc.

Both stores are due to open in Q2 2023.

RTE News Article

Bannon Retail Pulse – February 2023

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Bannon’s latest monthly Retail Pulse has now gone live.

In this publication we look at what has been an encouraging start for our retail leasing team with significant impetus carrying forward from 2022. Our footfall trackers also indicate a positive start to the year with January data for our shopping centre portfolio tracking almost in line with 2019 levels. Finally Neil Bannon looks at the stark decrease in the household debt to income ratio and what this might mean for the retail sector

To view the full report, please click here.

Retail Healthcheck with Neil Bannon

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Neil Bannon joined Newstalk Bobby Kerr on Down to Business on Saturday to discuss what we might do to attract the investment our towns and cities need right now.

To listen to the full podcast, click here.

 

McDonald’s to open at Rosebank Retail Park in Carrick-on-Shannon

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After many years of engagement McDonald’s will now soon arrive at Rosebank Retail Park in Carrick-on-Shannon. Great to have been involved in delivering another top brand to a very successful retail scheme.

Bannon acted for the owner and JLL Ireland for McDonalds.

A strong start to 2023 for the Property Management Team at Bannon

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Davy Real Estate has appointed Ireland’s largest, domestically owned commercial property consultancy firm Bannon, to manage Harbour Place Shopping Centre in Mullingar. The shopping centre which was opened in the mid-1990s comprises in excess of 100,000 sq. ft. of retail floor space and is anchored by Dunnes Stores. Other notable occupiers include Boots, Paul Byron Shoes, C.R. Tormey Butchers, Carraig Donn, Claire’s Accessories, Peter Mark, Holland and Barrett & Esquires.

Bannon manages over 55 retail shopping centres and retail parks across the country, covering seven million sq. ft. of commercial real estate worth c. €2 billion. As the market leader, Bannon has advised and managed the country’s most notable retail spaces in the last thirty years such as Dundrum Town Centre, Blanchardstown S.C., Swords Pavilions and The Square.

Commenting on the appointment, Director of the Bannon Property Management team, Ray Geraghty said “We are extremely proud to be working with Davy Real Estate on this important asset, and we look forward to working closely with the centre management team and occupiers. This instruction has particular significance for me given that Mullingar is my hometown. The midlands is going from strength to strength and we are proud to be supporting this growth. The appointment further validates the position we in Bannon hold as market leaders of retail property management in Ireland.”

Retail Sales Index

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Changing spending patterns saw retail sales in December 2022 fall marginally from November figures indicating the traditional Christmas rush has turned into more of a marathon than a sprint. Annualised figures (excl. motors) show a strong increase in sales values of 7.88% albeit a nominal increase in volumes of 0.16%. This reflects the ongoing price inflation which saw the cross over in the value and volume indexes last year. The data also shows a strong shift away from household and electrical which enjoyed a stellar performance during periods when other retail outlets were closed due to COVID restrictions.

CSO (Central Statistics Office Ireland)

Bannon Retail Pulse – January 2023

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The first Bannon Pulse of 2023 is now live. We look back at the strong level of activity in 2022, highlighted by the large number of lettings and new market entrants. Our occupancy trackers finished 2022 in positive form, as did our trading analysis across the retail categories. Neil Bannon gives his take on the market concluding that, ‘The opportunity for informed investors is to acquire retail assets with robust performance but priced to reflect a negative narrative’.

To view the full report, please click here.

Bannon Retail Pulse – December 2022

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Our final Retail Pulse of 2022 has just gone live. All in all, an exceptionally busy year for the team at Bannon. 2023 is looking very promising for Retail.

Neil Bannon concludes this Retail Pulse with 10 Reasons to be Cheerful about the Retail Landscape in Ireland (page 4).

To view the full report, please click here.

Bannon Retail Pulse – November 2022

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Bannon’s latest monthly Retail Pulse has now gone live. Neil Bannon looks at recent retail sales data to demonstrate how the negative narrative continues to clash with reality.

To view the full report, please click here.

 

 

Largest Irish Zara store to open at Blanchardstown Shopping Centre tomorrow

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A brand new Zara store will open at Blanchardstown Shopping Centre tomorrow just in time for Christmas.

The store is set to be the largest branch in Ireland and will open its doors and 9am. The fashion retailer’s Blanchardstown outlet has been temporarily closed as they moved to the 52,000sq ft former Debenhams unit in the shopping centre.

A spokeswoman for Blanchardstown Centre said: “The expansive new store will offer the latest womenswear, menswear and childrenswear collections, along with accessories, through a world-class and vibrant in-store experience.

“The new store features the latest technological innovations of Zara’s integrated online and physical store platforms. It is equipped with technological tools to offer customers a unique fashion experience. The store also includes new areas for the latest product lines, such as the menswear Athleticz line (the only one in Ireland), as well as footwear and accessories.”

Article by Dublin Live

MAPIC 2022

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A busy morning at MAPIC for our retail team Darren Peavoy and Jennifer Mulholland, catching up with retailers and colleagues in The International Retail Network (TIRN).

Camile Thai Kitchen is now open in Citywest Shopping Centre

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Great news for the Citywest community. The nationwide restaurant chain, Camile Thai Kitchen has chosen Citywest Shopping Centre for its latest location.

As property managers and letting agents for the centre, we wish Camile the very best of luck as they create new jobs for the local area and become part of this thriving scheme.

EZ Living Interiors have opened their fifteenth Irish store at The Retail Park Liffey Valley

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EZ Living Interiors have opened their fifteenth Irish store at The Retail Park Liffey Valley. The store, which adds to an already impressive retailer line up in the park, is home to over 100 sofa collections, 50 dining sets, 50 bedroom ranges and a divine collection of home accessories, with everything from the timeless to the trendy. With an array of furniture designed and manufactured locally in Ireland, the Irish-owned family business is passionate about supporting Irish jobs, skill and craftmanship.

Bannon are proud to act as Asset Manager, Property Management Agents and Lettings Agents for the scheme.

LUSH is now open in Dundrum Town Centre

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It’s been a few years in the making, working to get the right unit on the right pitch … but now it’s open. South Dublin has no excuse not to be smelling lovely with the sustainable, ethical and handmade cosmetics from LUSH.
The new Lush store opened in Dundrum Town Centre and we are proud to be part of the team opening their first flagship for Ireland, complementing Lush’s original Irish stores.

World Kindness Week

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To celebrate World Kindness Week, the team at Malahide Road Retail Centre carried out some random acts of kindness by surprising some of our shoppers with gift cards across all our stores to help with their shopping!

Happy shopping everyone!

Walker Communications Irish Life Investment Managers

 

Bannon Retail Pulse – October 2022

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Occupancy rates continue to improve and retail sales reach an inflection point.

To view the full report, please click here.

The Crossings, Adamstown

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A very exciting site visit earlier this week for Bannon’s Consultancy Team with Quintain Ireland at The Crossings, Adamstown where Tesco Ireland and Aldi Ireland are fitting out their new stores. Bannon are delighted to be appointed as Management and Lettings Agents for The Crossings, which upon completion will be the first new Irish shopping scheme delivered in over a decade.

For letting enquiries, please contact Darren Peavoy.

Why Ireland for retailers? Why Not Ireland.

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When a retailer considers expansion within or entry to a new territory, they must assess a wide range of factors to make a financially viable decision. Rather than Why Ireland, the Bannon Retail Team are using economic data to demonstrate to retailers – Why Not Ireland.

To start, there are several key statistics to Why Not Ireland:

  • Ireland is 1st in Europe for Economic Growth.
  • The country is 1st in the World for Business Productivity and Efficiency.
  • Census 2022 reported Ireland’s highest ever population of 5.12 million.
  • Ireland’s population has grown 21% in 15 years and is set to reach 6.334 million by 2050. This is the second biggest population growth projection in Europe. In comparison more than half of Europe is projecting a population decline.
  • Ireland now has more than 2.63 million people in employment the highest level ever recorded. This growth has led to higher wages and higher disposable income levels.
  • Irish households are now 40% wealthier than in 2007.
  • Irish household savings hit an all-time high in June 2022 of €145 billion euro while household debt continued to decline.
  • Retail sales are 29% above 2005 levels.
  • Ireland welcomed 7.2 million visitors during the first half of 2022, in comparison 2019 saw 11.3 million tourists for the full year.

The statistics don’t lie. These hard facts are aiding the post Covid retail recovery, providing confidence to expand to retailers and investors. This is evident in the number of new entrant brands who have recently signed expansion deals in Ireland including Lego, Russell & Bromley, Flannels, Carhartt & Pret A Manager to name a few.

The Bannon Retail Team is in active discussions with a range of additional new entrants. Some are considering Ireland ahead of the UK for store expansion. This is a significant shift away from the traditional route of opening in the major urban UK markets first.

Increased spend and the resulting increase in turnover is aiding retailers to make decisions to expand outside of the prime focus of city centres in Dublin, Cork, Limerick, and Galway. For example, Bannon recently welcomed Rituals to Marshes Shopping Centre in Dundalk. This demonstrates how a brand’s confidence in Ireland has seen retailer expansion strategy grow from Grafton Street to regional towns.

Whilst it might be viewed as a small country for expansion, the data provides a strong business case for retailers to decide Why Ireland should be a primary focus in their ongoing expansion plans.

 

Author:                  Jennifer Mulholland, Divisional Director, Bannon

Date:                     12th October 2022

Bannon Retail Pulse Report – September 2022

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Bannon’s latest monthly Retail Pulse has now gone live. In this publication Neil Bannon shares some insights into the ongoing decline of online fast fashion retailers and Darren Peavoy focuses on the rebound in footfall levels which has been seen in Dublin City Centre.

To view the full report, please click here.

Completely Retail Marketplace

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Super day meeting with international retailers at Completely Retail Marketplace in London for our retail team, James Quinlan, Jennifer Mulholland and Darren Peavoy.

Very positive interactions with plenty of requirements for the Irish market in 2023.

 

Irish Consumer Sentiment

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Predictably Irish Consumer Sentiment has dropped significantly in the face of an onslaught bad news; interest rates up, cost of living crisis, energy bills and the ongoing War in Ukraine. What will be interesting to watch is how this drop in sentiment manifests itself in retail sales.

To date year on year retail sales have held up well. Expect to see a divergence in performance across the retail sector as consumers prioritise certain spend categories over others. Sectors which are particularly sensitive to energy costs and and are in the highly discretionary spend segments will likely suffer the greatest squeeze whilst need based spending should hold up well based on strong demographics.

Penneys is now open in The Square Tallaght

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It is our pleasure to welcome Penneys to The Square Tallaght today. The addition of Penneys is a milestone moment in the history of the Centre.

In the past number of months, we have welcomed a number of new occupiers to the Centre, including a new state of the art cinema. The Penneys opening is another significant investment into the Centre and we wish them every success.

Congratulations to our Bannon team, asset managers Sigma Retail Partners, facilities consultants Evia – Sustainable Facility Services, the centre management team at The Square Tallaght and all who have contributed towards the project.

The Proven Resilience of Ireland’s Community Shopping Centres

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What is a Community Shopping Centre? 

Community Shopping Centres are characterised by a large supermarket anchor usually occupying over 50% of the scheme’s floor area. The balance of occupiers is typically complimentary or ancillary to the grocery offer, providing daily and weekly convenience needs to serve the local catchment such as butcher, pharmacy, coffee shop etc. These offers typically include local services, food & beverage, and high-frequency of purchase, low-cost retail products. While fashion offers may be included, these will generally be dependent on the catchment and competitive environment. Community Shopping Centres do not have the quantum of space compared to larger schemes to support a destination comparison or fashion led retail experience. 

How did COVID impact on these centres? 

The impact of COVID retail trading restrictions had different effects on footfall levels between shopping centre categories. The prevalence of essential retail uses within Community Shopping Centres meant the impact was relatively minor.  Footfall levels stayed at 80% of pre COVID levels in 2019 and turnover, in many cases, increased as physical retail spend was funnelled into essential services and products only. Comparison led schemes by contrast saw a drop of 40% of footfall during the same period. While the dominance of essential retail in Community Shopping Centres served to preserve footfall during trading restrictions, there has been a significant recovery of footfall over the last twelve months. Footfall levels in Community Shopping Centres are now back to 93% of 2019 levels. 

How will the increase in the cost-of-living impact these centres? 

During periods of recession and high rates of inflation, households still require essential goods and services. An increase in the cost of goods or a decrease in available income will see a larger portion of household expenditure directed towards the purchases of these goods. The net effect is that there is less available spend for want and luxury type goods. As the retail offer in Community Shopping Centres is generally need-focused, these centres are well positioned to perform relatively well and maintain occupier sustainability in difficult market conditions. The reliance on local catchments with short journey times also bodes well for these centres as the increased cost of fuel feeds into decision making for shoppers.

The need-focused nature of many typical Community Shopping Centre occupiers positions this category of centre to hedge against inflationary or recessionary shifts in the retail property market.  

 

Author:                 George Colyer, Surveyor, Bannon

Date:                     14th September 2022

Bannon Retail Pulse Report – August 2022

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Bannon’s latest monthly Retail Pulse has now gone live. Our focus in this publication is on New Developments, where we identify a number of new retail schemes due for completion in the next 24 months. On our footfall monitor more positive trends feature with High Street footfall, by example, showing a 25% increase year on year.

To view the full report, please click here.

Pret A Manger is now open on Dawson Street, Dublin 2

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Pret A Manger opened their first store in Ireland on Friday. Located on Dawson Street, Dublin 2 the store had a busy morning and we managed to visit between that and the lunchtime rush to get a full tour. The Pret a Manger team are so impressive in terms of their approach to quality and attention to detail.

This will no doubt be a great success and we are proud to be part of the team bringing the brand to Ireland.

Techstar in Castlewest Shopping Centre, Ballincollig, Cork

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Congratulations to Techstar in Castlewest Shopping Centre, Ballincollig, Cork on making the list of the top 100 friendliest stores to visit in 2022 awarded by Retail Excellence Ireland and now move on to the National Awards to be held in the Galmont Hotel Galway on the 12th November.

Great to have one of our new occupiers achieve this.

To view the list, please click here.

Babydoll Vintage Clothing is now open in Stephens Green Shopping Centre.

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Bannon is delighted to welcome Babydoll Vintage Clothing to Stephens Green Shopping Centre.

We wish the team the very best of luck with the opening.

Lego is now open on Grafton Street

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An iconic brand for an iconic street. It’s brilliant to see LEGO open their first Irish store on Grafton Street. Well done to the team who made this happen, our clients Irish Life and our joint agents Savills Ireland.

 

We haven’t seen so much activity on the street as in recent months, with a further 4 new stores currently being fitted out, defining Grafton Street as a world class shopping destination.

Retail Sales vs Consumer Confidence

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August recorded a small but continuing drop in consumer confidence, to a 22-month low, as households prepare themselves for further price pressures according to KBC Bank Ireland. What is interesting is the mismatch between what Irish consumers are saying and what they are doing.

Retail sales which traditionally track consumer confidence with a short lag period, have remained robust and in recent times even grown whilst confidence has dropped.

Thérapie Clinic is now open at Marshes Shopping Centre

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Another fantastic addition to the Tenant mix at Marshes Shopping Centre diversifying and complementing the existing offer.

Best of luck Thérapie Clinic.

The Warehouse Gym opens in Gateway Shopping Park, Co. Galway

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Bannon welcomes The Warehouse Gym to Gateway Shopping Park, Knocknacarra, Co Galway.

The Warehouse Gym is a great addition to the shopping park and no expense was spared in its development.

Bannon Retail Pulse Report – July 2022

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The Bannon Retail Pulse July 2022 issue is now available. This month, our Executive Chairman Neil Bannon focuses on the juxtaposition between robust economic statistics and a persistently negative narrative. Read Neil’s commentary ‘The Most Depressing Boom’ on page 4.

To view the full report, please click here.

Thurles Shopping Centre 25th Anniversary

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Wildflowers in full bloom at Thurles Shopping Centre ahead of the centre celebrating it’s 25th Anniversary this weekend, Saturday 25th June.

Thurles Shopping Centre have a Family Fun day planned, with Beat FM broadcasting on site for the afternoon along with Willy Wonka, magic shows and fun and games for all the family.

Bannon Retail Pulse Report – June 2022

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Our June 2022 Bannon Retail Pulse is now available. This month, as well as keeping track on our indicators which continue to improve, we focus on Grafton Street. We forecast that current vacancy is likely to drop significantly as 2022 progresses with a further enhancement of the mix and offerings on our premier retail street.

To view the full report, please click here.

Gorey Shopping Centre

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Managing 25% of Ireland’s Shopping Centres, our Property Management team is very proud of the scale and reach of our growing portfolio. On an ongoing basis, Bannon engages with various contractors to optimise user experience and maintain the appearance and accessibility across our retail portfolio. One such example is Gorey Shopping Centre.

A big thank you to everyone involved in recent projects, namely Arkomax (Refurbishment of Public Toilets & Installation of Parent & Child Facilities) and Breffni Group (Car Park Works). Also, a big thank you to the ever committed Niamh O’Byrne (Gorey Shopping Centre – Centre Manager).

TEAM – Together Everyone Achieves More!

Retail Property – One Size Does Not Fit All

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The challenges faced by retail and the effects on performance metrics against the various Covid trading restrictions, have triggered the need to reconsider how retail assets should be categorised and considered. ‘Retail asset’ is a broad, all-encompassing term used to capture Shopping Centres, Retail Parks and High Street/Main Street Shopping. At Bannon, we have extensive data and performance metrics across these retail asset types. This information demands a rethink on how we talk about the sector. While property is inherently heterogenous, with each asset having its own idiosyncrasies, we can refine asset types based on shared and similar characteristics, which overall, relate to the role and function these assets play in their local catchment and community. 

How various retail assets have reacted to and been affected by the restricted retail trading conditions that began in early 2020, have driven the need to re-categorise these assets. Areas considered include their ability to perform their function, the extent to which they remain functional against changes in market conditions and the characteristics of each scheme. This has provided a more focused approach that can be used to better inform sustainable tenant mixes and pricing analysis.  It is through our ability to combine analysis with Bannon’s unique data insights, that we endeavour to display thought leadership in the commercial property market. Based on this, Bannon will release articles on Community Shopping Centres, Retail Parks and Shopping Parks and High Streets that discuss the drivers that shape and influence key areas. They include their footfall, the opportunities and challenges their occupier mix face against emerging market trends and the role and function of these asset types within the market. 

Watch out for this series of articles over the summer.

 

Author:               George Colyer, Surveyor, Bannon

Date:                   20th June 2022

Bannon – The Conduit to A Seamless Acquisition Strategy

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The Bannon Retail team is acquiring stores on behalf of national and international retailers with a variety of use categories including Card Factory, Lush, Pret A Manager, Eason, Jump Juice Bars, Matt Britton, McCabes Pharmacy, Tuthills, Gino’s and L’Ombre Hair & Beauty.  As part of our work, we advise them on their rollout strategy across Ireland.

On meeting a potential acquisition client, we study the retailer to understand their brand placement and their customer profile. This together with other research allows us to accurately assess where best to locate them.

We secured the acquisition instruction for Smiggle (the Australian go to brand for school, lifestyle and stationery products) and by way of a sample case study we set out below the service provided and our contribution to a successful store roll out.

 

The Brief:

On successfully pitching our acquisition services, our brief from Smiggle was to provide a full service in identifying new store locations and negotiating lease terms on their behalf.

Stage 1:

Smiggle was a new entrant to Ireland.  We began by educating them on the current economic climate, the retail market within Ireland and the retail hierarchy across the country. Leasing structures in Australia are quite different to those commonly used in Ireland.  We prepared a detailed presentation on the standard leasing terms in Ireland to include lease length, owner and occupier renewal rights, upwards downwards rent reviews, break options and sub-letting terms. We also assisted them in securing a legal team to represent the company in Ireland.

Stage 2:

Understanding the retailer’s model, we used our expertise to advise where their initial focus should be placed for unit acquisition. We completed a table of target locations and collated an individual pack on each detailing footfall, scheme size, current retailers, available units and sample costs. We toured the Country with them and agreed the target towns and cities where they wished to secure representation.

Stage 3:

We began searching for suitable available units within the agreed target locations. We commenced negotiations and proceeded to agree rental terms, tenant incentives, lease structure, break options and additional tenant specific requirements. On finalising terms, we assisted the legal team in bringing the lettings to lease signing. We assisted them in appointing a fit-out contractor and liaised with the team to provide unit plans and the technical information required to prepare fit out drawings for owner approval.

Outcome

Smiggle saw a stronger opening in Ireland than in any other territory they trade in. The conclusion to the roll out strategy saw the opening of stores in Dundrum Town Centre, Blanchardstown Town Centre, Swords Pavilions, Ilac Centre, Mahon Point Shopping Centre, Crescent Shopping Centre and Winthrop Street in Cork.

Based on our understanding of the market and the Smiggle brand, our advice was an initial roll out of 5-10 store openings. We achieved this target, and the occupier was extremely pleased with our seamless acquisition strategy and the stores secured.

The Bannon Retail team specialises in both owner and occupier representation nationwide. We complete on average c. 170 retail transactions per year. Understanding the market is key whilst advising both owners and occupiers across their portfolio. We collect over 250 pieces of turnover data weekly/monthly, and we use this data and experience to maintain insight as the leading advisors to the retail market across the country.

Author:                Jennifer Mulholland, Divisional Director, Bannon

Date:                   15th June 2022

 

Neil Bannon on Dublin City Centre

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One of our recent Retail Pulse reports was referenced by David McWilliams in his article in Saturday’s Irish Times. The article suggests that one of the reasons for vacancy in the city centre is that Owners are demanding rental levels “priced to a pre COVID world” hoarding vacant property. The reality is very different, from a position of relative stability through 2018 & 2019 High Street rents dropped sharply, i.e. 40% by Q4 2020. They started to recover some of this loss in 2021 but are still down about 30% from 2019 levels. Current values on Grafton Street are just over half the level they were at the Celtic Tiger peak whereas values in every other real estate sector are now above their 2007 level. These are not my figures but are sourced from the MSCI Index.

From the Bannon perspective we have recently concluded 3 deals on Grafton Street and are in active discussions on many more. I don’t share David’s pessimism on Dublin City Centre and expect to see a more diverse and cosmopolitan retail mix emerge over the next year as these deals come to fruition, perhaps even a “vivacious metropolitan centre”.

If you want access to data on the retail and other sectors, click here.

 

112/113 Grafton Street

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Bannon is delighted to have been part of a very successful launch today of 112/113 Grafton Street. A superb retail building redeveloped to the highest standard by Irish Life Investment Managers. 13,000 sqft of top quality space now available through Bannon and joint agent Savills.

Bannon adds Citywest Shopping Centre to its impressive retail property portfolio

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Date 31st May 2022: Retail property market leader, Bannon, has been appointed by Ardstone to manage Citywest Shopping Centre.  This is the latest in a series of new wins for the firm.

The Citywest area was launched in the 1990s with the building of the business campus and hotel, the largest in the country.  The development, was followed by an explosion of residential property, with planning in place for additional houses and apartments.  In 2007 Citywest Shopping Centre was opened with retail units varying in size from 816 to 7,502 square feet.

Bannon is Ireland’s largest, domestically owned commercial property consultancy firm.  It manages over 50 retail shopping centres and retail parks across the country, covering seven million sq.ft. of commercial real estate worth c. €2 billion.  As market leaders, Bannon has advised and managed the country’s most notable retail spaces in the last thirty years such as Stephen’s Green S.C., Dundrum Town Centre, Blanchardstown S.C., Swords Pavilions. and The Square Tallaght.

Commenting on the new addition to their portfolio, Director of the Bannon Property Management team, Ray Geraghty said “Bannon are delighted to be working with Ardstone on what is another very significant shopping centre instruction. This instruction is further validation of the unrivalled expertise which the Bannon property management team possess. We are looking forward to bringing this experience to bear over the coming months which will be particularly relevant given the proposed residential development which Ardstone have planned for the site adjacent to the shopping centre.’’

For further information contact: Ray Geraghty Email: rgeraghty@bannon.ie Tel: 01 6477900.

Neil Bannon joined Newstalk Bobby Kerr on Down to Business

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Neil Bannon joined Newstalk Bobby Kerr on Down to Business on Saturday to discuss the medias negative perception of the Irish retail market.

While a negative narrative persists in the media, Neil points to CSO data that shows that the three-month moving average of retail sales values is substantially higher in March 2022 than it was Pre-Covid.

Neil & Bobby also discuss the future of Irish High Streets, how they were affected by Covid and the reset on Grafton Street with the arrival of new brands.

For the full discussion, please click here.

Bannon Retail Pulse Report – May 2022

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We are delighted to share our latest Bannon Retail Pulse.

The ongoing global macro-economic uncertainty is having a significant impact on consumer sentiment. Inflationary concerns coupled with an anticipated rise in central bank interest rates has provided a more uncertain backdrop and is something we will be keeping a close eye on in the coming months.

To view the full report, please click here.

Consumer Sentiment

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Sustained slide in Irish consumer sentiment points to major reassessment of economic and financial conditions.

The KBC Irish Consumer Sentiment Index slipped again in May for the fourth consecutive month. The previous four occasions this has happened in the twenty-six-year history of the survey reflected circumstances in which consumers faced marked difficulties in assessing potentially momentous changes in economic conditions. The last time the survey slipped for four consecutive months was in the summer of 2019 amid concerns over Brexit.

The current slippage follows the conflict in Ukraine and electricity/gas price hikes of 15-40% implemented by energy providers in the past two months. However, credit/debit card and Retail Sales data do not yet point to any material slowdown in spending, with expenditure on hard hit sectors such as accommodation and hospitality still recovering in May.

Bannon Retail Pulse Report – April 2022

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We are delighted to share our latest Bannon Retail Pulse. This month we focus on the Food & Beverage Sector where we report on strong take-up and low vacancy across the sector. Our Retail Pulse is updated monthly and all are available on our website bannon.ie.

To view the full report, please click here.

 

Society of Chartered Surveyors - SCSI Ireland

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Hambleden House
19-26 Pembroke Street Lower
Dublin 2
D02 WV96
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Phone: +353 (1) 6477900
Fax: +353 (1) 6477901
Email: info@bannon.ie

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