Retail Sector Performs Strongly Despite Economic Uncertainty
The Irish retail sector has continued to perform strongly over the past six months according to a report released today by commercial property specialists CBRE. Also, occupier activity has remained buoyant throughout the country’s prime locations.
The report shows that the volume of sales remains consistently strong across almost all sub-sectors, showing an overall annual growth of 3.9% in September 2016.
As a part of CBRE’s bi-annual vacancy study, 10 high streets were surveyed. Almost all locations admitted to the fact that they experienced either a reduction or stability in vacancy rates in Q3, 2016. According to CBRE active and international and indigenous occupiers have impacted positively on occupancy levels.
The study also noted that a notable buzz has returned to the high streets of Cork, Sligo and Waterford. Although Dublin City is currently undergoing a lot of infrastructure construction, the footfall levels remain consistently strong.
According to Bernadine Hogan, Senior Director in the Retail Agency department at CBRE, Ireland “We have seen a wide range of interest for retail accommodation throughout the country’s prime locations, both from new international entrants looking to enter the market as well as indigenous and existing retailers looking to expand their operations. Retailers appear to be taking advantage of the momentum in regional high street locations at present with a lot of the activity noted comprising retailers moving pitch on the same street.”
A downside to the increased interest the CBRE reports is the lack of availability on the capital's busiest high streets. Rents have increased since last year by 15% on Dublin's prime location Grafton Street, which has increased the rate to €6,300 per square metre. Allied to this, Henry Street saw a 29% increase to €4,500 per square metre.
Hogan added, “What will be challenging going forward is finding the right space for occupiers in prime locations, with many high streets and prime shopping centres nearing full occupancy”.
With offices in Dublin and Belfast, CBRE is Ireland's largest commercial real estate services company. The company has over 165 employees in Ireland.
© 2016 - Checkout Magazine by Donna Ahern