It’s been a turbulent few years for commercial real estate, particularly the commercial sector. Covid, energy prices and inflation have all had a profound effect on retailers. But Ireland has proved the economic resilience of bricks and mortar.
High Street Decline
Over the course of 2020/2021 covid caused many retail businesses to struggle, this caused an uncertainty in the future of commercial real estate.
The hardest hit was the high street, with popular complexes and areas like grafton street hitting running at only 85% occupancy. Prior to covid grafton street was extremely attractive real estate and had multiple businesses on a waiting list for premises, this meant it ran at 100% occupancy continuously.
Commercial Property in 2023
The best indicator of occupancy is to refer to the type of businesses that are looking to purchase leases. Large multi location businesses have modelling software allowing them to identify the best locations for their store based on many factors such as projected footfall, currency strength, forecasted profits and many more.
Grafton street has been hit by a wave of new leases for 2023, bringing its occupancy up to 95%. It’s projected by 2023 that it will once again be at 100% occupancy.
If the type of brands that pursue property are the best measurement for future occupancy, then the future looks bright for the Dublin high street. All the new leases have reportedly been taken out by best in class international giants, such as Skechers (US) Canada Goose (Canadian), Dr Martens (UK) Russell & Bromley (UK) and Lego (Danish).
Market Strength Indicators
Other indicators that high street retail is very much on the increase are existing shops such as Penneys on Mary Str,, the largest store in its irish inventory, remains its busiest. JD has had such confidence in the return of retail that it has introduced its sister brand Tessuti to Ireland. Tessuti opening in 2023 will replace Topshop. Arnotts, a homeware store, has been trading above projections
Flannels and H&M are both set to open at the former Clerys department store on O’Connell Street.
Additionally Hammerson’s plans to develop the six-acre Dublin Central site have been put on hold due to planning regulations. But is projected to restart next year.
KPM Commercial Property Managers
For expert commercial property advice, then contact KPM Group today. With years of experience in the commercial sector, we can find landlords the ideal space, tenant and rent.
For any advice that you require, call us free of charge for a free consultation.
