Retail – Far from dead

By Keiron Diamond
Director, Head of Retail

The retail sector has been the hardest hit since the recession began ands there has been extensive coverage of the difficulties that both retailers and landlords have had to endure over the past 4 years. The long awaited decision regarding rent review legislation is now scrapped, with a glimmer of hope for tenants of buildings controlled by NAMA, and no consolation for tenants in units outside of NAMA. The urgency of negotiation between the parties to agree viable rents for both landlord and tenants is now clearer than ever.

The inertia caused by uncertainty is now at least behind us and many retailers are seeing opportunities and expanding.

Musgraves have completed their acquisition of supermarket giant Superquinn and Hollister have now  opened their eagerly awaited unit in Dundrum Town Centre, both positively impacting on the retail sector. Boots, Tesco and Poundland (Dealz) are expanding rapidly as all can now take advantage of reduced rents, substantial tenant inducements and more flexible lease terms. Tenants are recognising that although the market is undeniably tough at present, consumers will continue to spend and the watch word is “value”.

We at Knight Frank have recently completed acquisitions on behalf of Pandora at Dundrum Town Centre, The Square Tallaght and Blanchardstown Shopping Centre, a further two stores are due to open shortly in other locations. Other acquisitions on behalf of clients include, Amplifon in Abbey Street Dublin and national pharmacy chain Sam McCauley Chemist at the Showgrounds in Clonmel. Terms have been agreed for Yogen Fruz at both the Jervis Centre and Victoria Square Belfast, who are seeking a further 10 units in the Republic of Ireland. We are also seeking five Drive-Thru sites for KFC around the country. We are actively advising a range of retailers with a view to continued expansion or new entry into the Irish market. Knight Frank are confident that 2012 will be a busy year ahead, and we are keen to react positively to new retail opportunities.