The Impact of Ireland’s New Deposit Return Scheme on Shopping Centres

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The retail sector in Ireland is preparing for the country’s new Deposit Return Scheme (DRS). Starting from February 1, 2024, consumers will be required to pay a small deposit (15c/25c) on plastic and aluminium beverage containers, which they can reclaim by returning the empty containers to designated collection points.

The DRS represents a substantial step toward achieving a more sustainable future. In line with the Single Use Plastics Directive, Ireland must ensure the separate collection of 77% of plastic beverage bottles placed on the market by 2025, with a further increase to 90% by 2029.

Many of the collection points will be located in shopping centres. While the primary objective of this scheme is to reduce plastic waste and encourage recycling, shopping centres will experience notable impacts on their operations and customer behaviours. One immediate consequence of the DRS will be the need for shopping centres to accommodate the significant increase in the volume of recycling. To effectively handle this increase, shopping centres will need to assess their existing infrastructure and make necessary adjustments. Proper management and maintenance of these areas in collaboration with recycling partners will be crucial to ensure a smooth and streamlined process.

With just over six months remaining until the implementation of the DRS, the Bannon Property Management Team is observing larger retailers in the firm’s shopping centre portfolio making preparations for in-store returns. While these changes may require initial investments and adjustments, the implementation of the DRS is likely to bring about positive changes in consumer behaviour, including increased footfall. The introduction of the DRS creates an added incentive for consumers to visit shopping centres. This increased footfall can translate into higher customer traffic, benefiting not only the recycling depots but also other retailers within the shopping centre.

By embracing this transition, shopping centre owners can demonstrate their commitment to environmental responsibility, attract socially conscious customers, and contribute to a greener future.

With over 25% of Ireland’s shopping centres under Bannon’s management, the firm is highly focused on implementing best practices that promote sustainability and reduce environmental impact while enhancing the customer user experience. If you would like more information about the DRS or discuss implementing sustainable practices in your properties, contact the Bannon Property Management Team today.

 

Author:               Alex Patterson, Director, Bannon

Date:                  13th July 2023

 

Bannon Retail Pulse – June 2023

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

In this publication we look at retail occupier activity on Henry Street & O’Connell Street and Neil Bannon discusses the juxtaposition of the vacancies created by Debenhams failure in Ireland and the UK.

To view the full report, please click here.

Rituals is now open in Athlone Towncentre

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It was super exciting to see Rituals open at Athlone Towncentre on Saturday. A great brand to further strengthen the Tenant mix.

For remaining leasing opportunities please get in contact with Jennifer Mulholland or Lorcan Keenan or our joints agents Cushman & Wakefield.

Lipstick Clothing now open at Nutgrove Shopping Centre

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We are pleased to have negotiated a new long term lease with Lipstick Clothing in Nutgrove Shopping Centre. Lipstick first opened in Nutgrove in 1984, it’s wonderful to see a brand stand the test of time after 39 years showing both the strength of the Centre, the retailer and their partnership together.

For further leasing opportunities please get in contact with Jennifer Mulholland.

Vila store now open at Athlone Town Centre

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Fantastic to see the new Vila store now open at Athlone Town Centre.

It was a pleasure to work with our clients Alanis Capital to deliver this letting.

Further exciting new additions in the coming weeks and months ahead.

Bannon Retail Pulse – May 2023

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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.

Shopping Centre Managers Association of Ireland

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Some of our property management colleagues in attendance at the Shopping Centre Managers Association Ireland annual meeting this morning.

Stephen Mc Coy Ray Geraghty Eugene Burns

Bannon Retail Pulse – April 2023

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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.

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

 

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.

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.

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.”

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.

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

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.

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.

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.

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.

Bannon Partnership with TÜV SÜD for Best-in-Class Vertical Transportation Systems

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As market leaders, Irish- owned Bannon manages over 75 commercial assets including shopping centres, retail parks and offices with a combined footfall of over 100 million visitors per annum. Given the level of footfall through the assets under our management, we prioritise the safety and efficiency of all plant and equipment. One area that we give significant attention to is vertical transportation equipment.

Vertical transportation refers to different types of equipment used to move building users between different levels of a building. Examples from our portfolio include passenger lifts, goods lifts, escalators, passenger conveyors and disabled access platforms in both retail and office settings.

Due to the essential nature and complexity of vertical transportation systems, Bannon engages TÜV SÜD Dunbar Boardman as specialist consultants. TÜV SÜD Dunbar Boardman is Europe’s leading independent lift & escalator consultancy, and they currently support over 18,000 lift units across Europe. Our partnership and collaboration with the firm dates back several years.

The Bannon management portfolio includes over 205 individual vertical transportation units. We utilise 10 different lift contractors to maintain and repair the units on our clients’ behalf. TÜV SÜD Dunbar Boardman helps us ensure that we are getting best performance and efficiencies from our assets which are serviced by our lift maintenance contractors, thus providing value for money.

TÜV SÜD Dunbar Boardman offer a full range of services including design, asset management, maintenance management support, condition reporting, project management, witness testing and expert witness.

Within the maintenance management services Tuv Sud review and process statutory inspection reports ensuring completion of all items under the terms of the maintenance contract and obtain quotations for any works that are deemed out of the contact scope.

One of the main roles performed by TÜV SÜD Dunbar Boardman is completing competitive tenders for maintenance contracts and modernisation or complete replacement of this equipment. In addition to tendering and putting contracts in place, they also manage our maintenance contracts. This includes sign off and review quotations for repair works to the equipment which fall outside the scope of the maintenance contract, process statutory inspection reports ensuring completion of all items under the terms of the maintenance contract.

At Bannon our culture is to provide best-in-class service to our clients and users across our portfolio. We achieve this by collaborating with industry leaders and partners such as TÜV SÜD Dunbar Boardman to provide service delivery levels that will ensure quality, compliance, cost awareness and safety to our lift users.

 

Author:                 William Lambe, Divisional Director, Bannon

Date:                     23rd August 2022

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.

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.

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.

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 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.

Tipperary Crystal is now open in Stephens Green Shopping Centre.

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Bannon is delighted to welcome Tipperary Crystal to Stephens Green Shopping Centre.

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

Benefits of Property Management Due Diligence for Investors

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At Bannon we manage over 75 individual commercial assets including Shopping Centres, Retail Parks, Neighbourhood Schemes, Multi Let and Single Let Offices. This represents over 7 million sq.ft of commercial real estate in Ireland, with an estimated value of €2 billion.

Given our involvement and exposure within this industry, we are regularly engaged to assist purchasers with the property management due diligence process associated with large scale property transactions. This process is particularly complex when it comes to the purchase of multi let retail assets.

When concerns are presented, an investor can only then appreciate the importance and benefits of a pre – sale due diligence. It highlights the perils associated with buying an asset and ultimately determines the price they will pay for the asset on closing.

A typical due diligence process will involve several specific fields of expertise, namely: Legal, Tax, Building Surveying, Planning, Sustainability, Property Investment and Management.

Once engaged, Bannon will work closely with the relevant advisors to ensure a thorough review of all property management related topics are analysed. As part of a due diligence process for a commercial property we would typically provide advice concerning the following items;

  • Lease review & creation of a bespoke tenancy schedule suited to our clients’ requirements
  • Rent arrears
  • Service charge arrears
  • Service charge budget & apportionment
  • Benchmarking of service charge budget line items Vs Bannon portfolio
  • Floor area measurement comparison
  • Sinking fund
  • Insurance programme review (Incl. reinstatement cost assessment)
  • Benchmarking of footfall Vs Bannon portfolio (if applicable)
  • Facilities management contract review i.e., cleaning, security, landscaping, PPM (Preventative Property Maintenance) etc.

The list above is dependent on the complexity of the asset in question and can be amended to take account of asset specific variables.

Ordinarily the above information would be readily available from a data room which would be set up by the vendors agent. Once the information is received it takes some time to comprehend and consolidate such a vast quantity of information into a format which is easily understood by both our client and legal representative when negotiating the finer detail on closing of a sale.

In advance of such negotiations, we will equip our client with the findings from the due diligence process, paying particular attention to areas of concern. Common concerns which can arise from a due diligence process include;

  • Apportionment of arrears on closing (both rent & service Charge)
  • Underfunding of the sinking fund
  • Outlining the existing landlord voids – specifically relating to service charge
  • Summarizing concessions given to tenants but not properly documented – This has been common throughout the recent Covid period
  • Outlining agreements with tenants that do not have an executed deed of renunciation
  • Maintenance issues which need to be addressed as a priority

If you are considering an investment in a commercial property, please do not hesitate to reach out to a member of the Bannon Property Management team.

 

Author:                 Eugene Burns, Associate Director, Bannon

Date:                     27th April 2022

 

Retail Parks Prove to be Resilient During Covid

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Looking back over the past decade the retail property market has experienced a tumultuous time.  Recession following a boom, followed by a resurgence, then the impact of Brexit, Covid, the move to more on-line shopping, and more recently the war in Ukraine.  Retailers and the retail property market have been the hardest hit during this period, and it may be some time before the market stabilises. However, one sector within the retail property market has outperformed in the last 3 years.

Retail Parks have come through the past two years’ experience in an even a better position that before.  The sector has been the beneficiary of multiple factors.

The closure of other retail outlets funnelled consumer spend into retail warehousing parks as the only outlet for frustrated shoppers. This was helped by the nature of retail warehouse parks versus enclosed shopping centres. As large boxes with plenty of space for social distancing, they offer surface outdoor parking and ease of access for click and collect purchases.

What also helped was the focus on the products that are typically sold in retail parks. There was a perfect storm of an increase in home improvements and outdoor activities being a major focus for Covid bound customers acquiring items such as:

  • DIY
  • furniture and soft furnishings
  • the need for new electronics to assist with remote working and learning
  • an increase in pet ownership
  • toys for housebound kids
  • a boom in healthy pursuits driving sales in sports/leisure stores.

This all led customers to their local retail park.

The Bannon Retail Team has seen this resurgence across our extensive portfolio of Retail Parks that we lease and manage. Car numbers in retail parks are up considerably when compared to 2019 numbers, which is a different story when compared to the reduction in footfall that is being experienced in enclosed shopping centre and city centre environments. 

Vacancy rates in retail parks were already low in Q1, 2020.  The acceleration of transactions during and after the third Covid lockdown has pushed vacancy rates to a very low percentage.  Schemes such as Limerick One Shopping Park and The Retail Park Liffey Valley currently have vacancy rates at a long-term low.

New to market retailers and those slow to expand pre-Covid are now seeking increased representation in the better parks in Dublin and provincial locations.  This supply and demand dynamic may encourage owners of retail warehouse parks to start considering expanding their schemes to cater for this renewed demand.

Retailers keen for further expansion include Dutch furniture retailer JYSK, global sports brand Decathlon, Next Home, Homesense, Home Store + More, Party City and EZ Living Furniture/Interiors to name a few.  This sector of the retail market will be keeping us busy for the foreseeable future.  

Author:                 James Quinlan, Director, Bannon

Date:                     6th April 2022

High-end UK retailer Flannels to open at Blanchardstown Centre

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Premium fashion group Flannels has signed a deal for its second Dublin store.

Having committed earlier this year to occupy half the retail space at the Clerys Quarter on O’Connell Street, the luxury retailer is to open for business at the Blanchardstown Centre.

Flannels, which is part of Mike Ashley’s Frasers Group, will occupy the ground floor of the former Debenhams unit. At 45,000sq ft, the space will be the larger of the two outlets committed to by the retailer in the Irish market to date. Flannels’ premises at the redeveloped Clerys store will extend to 30,000sq ft.

Commenting on the opening of the latest store, a spokesperson for Frasers Group said: “We’re excited to open Flannels in Blanchardstown and bring a world-class shopping experience to a new destination. Our ambitious expansion plans mark a pivotal moment for the business, and we’re pleased to be opening in Blanchardstown as part of our next cohort of store openings in Ireland.”

‘Ongoing strategy’

Pat Nash, managing director at the west Dublin retail scheme’s asset manager Falcon AM, added: “Flannels’ commitment to a new lease in Blanchardstown Centre is a huge endorsement of the scheme and follows the completion of a major €17 million mall refurbishment. This is in line with our ongoing strategy to strengthen and reposition the asset . We are excited to be welcoming new retailers to the centre and indeed the Irish market during these unpredictable times.”

Falcon AM made the decision to split the Debenhams’ unit, which comprises more than 100,000sq ft in its entirety, to meet with current retailer demand according to the firm’s leasing director, Sharon Walsh. Ms Walsh said that a further announcement will be made in relation to the upper level of Debenhams’ former premises in the coming weeks.

BNP Paribas Real Estate and Bannon are the joint leasing agents for the Blanchardstown Centre.

Article by The Irish Times

Cycle for Ukraine Fundraiser

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Best of luck to the Square management team, security, facilities and all the store staff with the “Cycle for Ukraine” fundraiser. The fundraiser will run today and tomorrow in the Centre Mall, from 11.00am – 6.00pm.

All funds raised will go to the Irish Red Cross to help those affected get food, medicine, shelter and water. Donations will also help those displaced by the conflict.

Cash donations are welcome, however if you cannot make it in person, you can donate online here or by scanning the QR Code in the image attached.

Happy International Women’s Day

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Happy International Women’s Day.

To mark the day and The Square’s Club Together initiative, please watch the video below that celebrates amazing “Strong Women” in the local community.

Tallaght is blessed to have so many influential role models in the community. Their amazing achievements inspire the younger generations and help create a thriving society where equality duly prevails.

We are very fortunate to work with some amazing women in Bannon and across our wider portfolio. Thank you for all your help and support.

The Latest Coup for Retail Property Experts Bannon

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Ireland’s largest, domestically owned commercial property consultancy firm Bannon, has been appointed by Davy Real Estate to manage Stephens Green Shopping Centre. Located in the most prestigious and cultural area of Dublin city centre, the shopping centre comprises over 320,000 sq. ft. of lettable retail floor area.

Bannon manages over 50 retail shopping centres and retail parks across the country, covering six 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 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 Ireland’s most iconic retail destination and the first premium shopping centre built in the country. The appointment is further validation of the team’s unrivalled experience managing assets in the retail sector.”

Since the start of 2022, Bannon are responsible for the management of the shopping centre which includes over 100 retail outlets. As the retail sector emerges from the effects of COVID-19 lockdowns, Bannon’s management role will involve the smooth day-to-day running of the busy centre and ensuring rent and service charge collection is maximised for Davy Real Estate.

Ray Geraghty continued “Our experience is supported by a strong cross departmental approach in Bannon. The Property Management team work seamlessly with the Consultancy, Agency and Professional Services arms of the business. This results in a consistent line of communication to our clients. We are excited to get to know the occupiers of Stephens Green Shopping Centre, and working closer with them, centre management and the investors to make the centre stronger, more profitable and more sustainable.”

Retail Sales Data Report

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Despite month on month reductions, recently released CSO Retail Sales Index figures for December 2021 report a 3.6% increase in sales values and 2.2% reduction in sales volumes when compared to 12 months prior however these figures do not paint the full picture. When motor trades and bars are excluded, these figures rise to increases of 5.4% and 0.4% respectively. The true strength of the retail sector shows through when the data is compared to pre-pandemic levels which shows a 10.2% increase in sales values and 11.4% increase in sales values compared to December 2019.

Taking a deeper dive into the data it is evident the traditional festive rush was more subdued in December 2021 with a stronger November trade showing evidence of consumers forward planning.

Top performing sectors for December 2021 were bars following their recent reopening (value increase 39.8%, volume increase 36.5%) and pharmaceutical, medical and cosmetic articles (value increase 11.1%, volume increase 9.9%).

Shop Local this Christmas

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Despite the uncertainty of COVID, it is great to see such optimism across our property management portfolio with over 40 new openings since we emerged from lockdown in May 2021. Shop Local this Christmas!

Regatta Great Outdoors store is now open in Nutgrove Shopping Centre

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We’re delighted to see the new Regatta Great Outdoors store open in Nutgrove Shopping Centre, Dublin 14.

This was our first acquisition on behalf of our new client Regatta Ltd.

The super smart looking store, which will also incorporate Craghoppers and Dare 2b products, will serve the catchment well and the strong customer base who are embracing the outdoors even more since the arrival of Covid.

It was a great team effort to get the store open and ready for Black Friday and the run into Christmas, working with Brian Fox and the Regatta Team and Andrew Johnston.

We are continuing to look for more opportunities countrywide.

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 

Boojum is now open in Blanchardstown Centre

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Another great brand coming to Blanchardstown Centre. The addition of Boojum will bring a boost to the F&B offering of the centre and the catchment. It was great working with Sharon Walsh, Andrew McPhail and Gareth Shiells on the letting with discussions commencing pre-Covid and taking a few twists and turns before agreeing this super new store. Congratulations on the opening and we wish you the best of luck.

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 

FitPink is now open in Blanchardstown Centre

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We often rush to welcome international brands to Irish high streets and shopping centres, potentially overlooking the quality of home grown indigenous brands. With that in mind, its great to have been involved in bringing Donegal originated FitPink Athleisure to Blanchardstown Centre.
This is the first physical store for FitPink in Rep of Ireland which no doubt will go from strength to strength, capturing the move to active lifestyles which people have embraced over the last 2 years. Best of luck to Jenni Timony and her team in the new venture and hopefully we will see some more stores opening around the country in 2022.

SOSU, POCO and Walker & Hunt Opening in Blanchardstown Centre

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Great to see a host of new store openings in Blanchardstown Centre with three very exciting brands, SOSU by Suzanne Jackson, POCO By Pippa and Walker & Hunt being the latest additions to the ever-growing Tenant mix in the run-up to the Christmas trading period.
Bannon are pleased to be involved in the leasing of Blanchardstown Centre which has continued to show great resilience as a shopping destination throughout all of the challenges faced over the past 19 months. We are also excited to watch the centre go from strength to strength once the ongoing mall redevelopment is complete.

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.

First Sky Store in Ireland Coming Soon to Blanchardstown Centre

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Another first for Blanchardstown Centre and part of a run of some exciting announcements for the scheme. Having the first Sky Store in Ireland will bring some interesting animation and events to the centre.

We are delighted to have advised Falcon AM and Blanchardstown Centre on this letting working with Eoin Feeney on the successful deal.

Society of Chartered Surveyors - SCSI Ireland

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