Dublin Retail Parks Reach Full Capacity
Published on Oct 18 2016 11:00 AM
Less than 4% of the total floorspace is available to let at Dublin’s 14 retail parks, according to research released today by BNP Paribas Real Estate, one of Ireland’s leading commercial property cons...
Less than 4% of the total floorspace is available to let at Dublin’s 14 retail parks, according to research released today by BNP Paribas Real Estate, one of Ireland’s leading commercial property consultants.
The BNP Paribas Real Estate report ‘At A Glance: Dublin Retail Parks’ found Irish-owned Woodie’s DIY is the largest occupier by store number, followed by Halfords, Home Store + More, Carpetright and Homebase. Of the 14 Dublin retail parks analysed, eight were found to be fully occupied; Airside, Blanchardstown, The Park Carrickmines, Fonthill, Leopardstown, Lucan, Nutgrove the Arena Centre retail parks.
The report ties the maximised use fo retail space with increased consumer spending. Joan Henry, Head of Research at BNP Paribas Real Estate said: “Retail parks were particularly affected during the recession when consumers held off on the purchase of big ticket household and DIY items. However, the increase in the retail in the household goods category in particular has supported growth for these retail park anchor stores.
“The increase in consumer spending has boosted demand for space at retail parks, with the overall vacancy rate now just 4%. These retail parks are now nearly fully occupied for the first time in over a decade. With no new retail parks being built, rents are expected to rise, making it more difficult for overseas stores to enter the market,” Henry continued.
With the population of Dublin increasing by 5.5% since 2011 and no new retail parks being built, the amount of retail park space per person has fallen to as little as .11 sq m in Dublin City Council area.
The report is the first in the country to specifically look at the retail parks operating in Dublin, and analyses fourteen parks profiling ownership, population density, occupied type, vacancy rates and rental trends.
Eoin Feeney, Executive Director Lettings and Sales (Retail) at BNP Paribas Real Estate said: “Retail parks are one of the few real estate asset classes in Dublin that can genuinely be described as being under-supplied. There are no new developments in the planning pipeline with limited room to extend in most of the current retail parks. As a result, rental growth prospects for landlords will be strong with significant upside particularly in the most sought after retail parks.”
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