Property consultants CBRE have claimed that the retail property sector remains active despite the forthcoming Budget, with occupiers and investors continuing to look for prime retail opportunities in the market.
CBRE made its comments in its latest Q3 Irish Retail Market View report, which found that Prime Zone A retail rents have fallen by 10% since Q1 2012 to stand at €4,500 per square metre, on average 55% below peak levels. Prime shopping centre rents are down approximately 8%, and currently stand at €3,000 per square metre. Retail vacancy rates are highest in Athlone, according to the report, at 18%, with Limerick experiencing vacancy rates of 16.3%.
“Many retailers are pursuing aggressive expansion and relocation plans to take advantage of the lower rents and the ability to sign shorter, more flexible leases than was the case only a number of years ago,” said Florence Stanley, Executive Director of Retail in CBRE. “Grafton Street in particular attracted a number of new retailers over the last six months, while outside of the capital’s high streets international occupiers signed leases for accommodation in prime locations and shopping centres.”