Shoppers of a particularly discerning variety descended upon the Jervis shopping centre last week, ready to bid not for exceptional bargains, but for commercial real estate. Yes, you heard that right; shopping centres are apparently the new “it” item this season.
A surprising 13 first-round offers were floated for this Dublin city centre gem, quietly placed on the market by its owners, Paddy McKillen and Padraig Drayne. You might think they were selling the last donut in a bakery, but no, just a shopping centre that hasn’t seen a proper sale since Bill Clinton was president. A piece of real estate that still has the stink of the ‘90s, and yet here we are, all nostalgic.
Notably, this is the first time since its inception that Jervis has been up for grabs, making it one of the last remaining unicorns built during the shopping mall boom. Developers apparently took a page from the “never sell” handbook until their bank accounts needed a bit of freshening up. Bidders included the likes of the Comer Group, U.S. property whiz Hines, and a medley of lesser-known entities that sound like they just walked out of a financial thriller.
Meanwhile, we saw an intense bidding war for Marlet’s trio of retail parks across Dublin, Louth, and Tipperary, generating ten offers—because what’s more exhilarating than hopping onto the property investment rollercoaster instead of, say, a holiday? If you thought this was just some pandemic hangover, think again. This is retail’s phoenix rising, making cash registers sing once more. Why make online purchases from the couch when you can risk your retirement savings on a shopping mall?
In the first quarter of the year, retail accounted for half of the value of all property deals in Ireland. With offices taking a backseat and rental schemes languishing, retail is clearly feeling its oats—or perhaps just the adrenaline rush of a bidding war. U.S.-based Realty Income, a retail investment juggernaut, splashed out nearly a billion dollars on eight retail parks this year, because obviously, the plan to invest in shopping means you also have to ensure you have more retail than the average high school has lockers.
The post-Covid doomsday predictions for physical retail? Well, let’s just say they were a bit exaggerated—like a Hollywood sequel that just couldn’t be killed off. But we’re not here to rehash failed forecasts; let’s talk numbers: AIB reported that in-store spending rose by 2% compared to last year. Seven out of ten people prefer traditional shopping, proving once and for all that when in doubt, stick to what you know—preferably with a nice latte in hand.
As for the actual shopping experience, Jean McCabe of Retail Excellence Ireland believes customers are flocking back to stores for an experience—yes, that good old-fashioned feeling of guilt from impulse buying. Retailers are now amping up their offerings to provide more “experiential” delights, like food options and entertainment venues, in a valiant attempt to convince consumers that, no, they surely don’t need another online coupon for the latest fad. Ironically, it’s all about the economics; as sales rise, they’re opening more stores just to keep the insanity going.
And yet, amid this chaotic dance of capitalist fervor, the mammoth quantities of empty store units from previous retail failures still loom over the landscape, each whispering sweet nothings of missed potential. The sector clearly has a new mantra: resilience is the name of the game, not just for retailers but also for investors willing to dive back into the murky waters of shopping centres. So buckle up, everyone! The shopping spree of the century is just beginning, and who knows? That overpriced mall might just be the quirky investment you never knew you needed.
