18 IRELAND


Making the best of hard times


The retail leasing market is showing signs of life despite Ireland’s economic woes T


he Republic of Ireland is now four years into an economic slump. Repeated austerity budgets have attempted to underpin the financial system but they have had a devastating


affect on the Irish consumer. New research from CBRE points out that “consumer sentiment is still weak with retail sales having declined for 39 consecutive months and conditions remain challenging.” CBRE uses footfall on Dublin’s twin prime shopping streets –


Henry Street and Grafton Street – as a barometer of Irish consumers’ propensity to shop. Peak Saturday flows are running at about 11,200 per hour on Henry Street, down 10 per cent year-on-year and at 11,600 per hour on Grafton Street, down 4 per cent on 2010’s figures. However, it may be that retailers have decided that austerity is the


new normal and according to Larry Brennan, head of retail at Savills, leasing activity is continuing. “The good news is that we’re only seeing low single-digit falls in like-for-likes, and people can live with that. So the occupier market’s OK,” he says. “We’re seeing a reasonable number of lettings.” As a result Savills is forecasting that Grafton Street will achieve near to full occupancy by the end of the year with the arrival of a number of new retailers. New retailers to the central Dublin area have included Disney Store,


SHOPPING CENTRE August 2011 www.shopping-centre.co.uk


Pandora, Skechers and Forever 21 and take up from new retailers has lead to a scarcity in supply, especially at the smaller end of the size range. This is leading some brands to consider locations that would once have been considered ‘off-pitch’. For example Abercrombie and Fitch will open on College Green later in 2011.


“The good news is that we’re seeing low falls in like-for-likes, and people can live with that”


“The high levels of demand has led to a number of unsatisfied


requirements,” says Brennan. But he warns: “While the improvement in occupancy levels is encouraging, it is still a tenants market and we do not predict a return to significant rental growth at this time.” Savills research has found rents on new prime lettings have fallen by


up to around 50 per cent to pre-boom levels, achieving €4,000 per sq m zone A pa on Grafton Street and €3,000 on Henry Street.


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