Bannon’s latest monthly Retail Pulse has now gone live. In this publication Neil Bannon shares some insights on what impact significant new housing supply will have on the retail sector.
To view the full report, please click here.
HMV reopening in their original Henry Street store is great news for the Street! More new store openings to follow…
Bannon’s latest monthly Retail Pulse has now gone live.
In this publication Neil Bannon discusses the up to date retail sales figures recently published by the CSO and how Irish consumers continue to confound predictions.looks at the stark decrease in the household debt to income ratio and what this might mean for the retail sector
To view the full report, please click here.
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
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.
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.
Another store acquisition on behalf of Dubray opened their doors this weekend on 39 Mary Street, Dublin 1.
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.
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
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.
