According to the CBRE, the first six months of 2017 have been busy in the commercial property market, albeit ‘a different kind of busy’ when compared to the performance between 2014-2016.
The commercial property specialists released their July bi-monthly report which focuses on recent trends and transactions in all sectors of the Irish commercial property market at the mid-year point.
According to Marie Hunt, Executive Director & Head of Research at CBRE Ireland, “Despite somewhat of a slow start to the year, the first half of 2017 overall has been very busy and there is currently a large volume of deals underway in all sectors of the commercial property market as well as several assets being prepared for sale.
“This bodes well for an even better second half performance although year-end totals will invariably depend on the volume of transactions that sign by year-end. Despite continued uncertainty around Brexit, it is encouraging that activity has continued at pace in all sectors regardless.
In terms of the retail sector, increased housebuilding and strong employment generation has seen demand for bulky goods such as furniture & lighting and electrical goods increase significantly, which in turn has proved positive for many retail parks around the country.
The biggest challenge in the retail sector, however, continues to be a scarcity of stores to match volumes of occupier demand for established schemes and prime high street locations.
Prime Zone A rents on Grafton Street remain stable at €6,300 per square metre at the mid-year point.
The main effect Brexit is having on the Irish retail property market is that it has stalled a lot of companies who are looking to expand their business into the country.
UK retailers in particular have put whatever plans on hold in the short term due to uncertainty around Brexit and the UK election.
© 2017 - Checkout Magazine by Aidan O'Sullivan