Shoppers of a distinctly different variety flocked to the Jervis shopping center last week. No, not the bargain hunters seeking the last pair of discounted shoes, but rather an ensemble of serious bidders ready to fork over real cash.
Up to 13 first-round offers were laid on the table for the Dublin city center mall, which its owners Paddy McKillen and Padraig Drayne have quietly decided to sell, presumably because owning a shopping center was just not as exciting as it once seemed. This was a historical moment—the first time since its development in the 1990s that Jervis has been open for business under the negotiation hammer. It’s practically ancient in “shopping mall years,” making it a rare gem still clutched by its original developers.
Among the bidders were names so big, they could probably buy the moon—if it were on sale. The Sunday Times hinted at contenders like the Comer Group and US property giant Hines, not to mention Peter Horgan’s Lugus Capital and Patron Capital, who represent clients but undoubtedly bring their own shopping bags. Talk about bringing your A-game to the auction!
Meanwhile, down at Marlet’s trio of retail parks in Dublin, Louth, and Tipperary, the bidding went wild, attracting ten initial bids. Just a casual Tuesday, really. Retail has somehow emerged as the shining star in property investments, outshining offices that are still in their sad post-pandemic slump, grappling with serious existential crises, while retail is like “Look at me!” All signs point to a glorious resurgence, despite the doom and gloom prophesied during the pandemic.
Statistics also suggest that retail is not just rising from the ashes but throwing a celebratory disco party. AIB’s latest retail report for Q1 revealed that in-store spending actually increased by 2%. Moving like a phoenix, it turns out people prefer to buy their everyday essentials in person, as discussed in the EY Future Consumer index, which stated that 70% of consumers cling to neighborhood shops for their daily needs like moths to a flame.
Even Jean McCabe, CEO of Retail Excellence Ireland, remarked on how customers are flocking back for the ‘customer experience.’ Honestly, who knew that interacting with actual human beings could be so thrilling? Retailers are opening more stores, perhaps thinking having a brick-and-mortar one can’t hurt when e-commerce is, well, everywhere. Shopping centers are adjusting their tenant mixes, turning into entertainment hubs with food, drinks, and Instagrammable moments aplenty.
Brendan McDowell, the mastermind behind BPerfect Cosmetics, can share a success story or two about entering the physical retail maze. After dabbling online, he opened 13 physical stores across the UK and Ireland—because when life gives you ecommerce, why not set up shop in real life? He cleverly negotiated shorter-term deals and longer rent-free periods during the pandemic, proving that everything really does have its upside. It seems even in bleak economic times, the right kind of negotiation can swipe left on catastrophe.
Yet, amid this retail renaissance, not every mall is bathing in glory. While shopping districts are thriving, tertiary locations still seem to be drowning in vacancies, operating as ghost towns. Even with troubling tales of retail giants like Pepco divesting its UK stores for a pound—yes, a single pound—the outlook is not as dismal as it sounds. With reports of transformations in the tenant mix and new brands swooping down to fill the void, perhaps retail’s resilience is the perfect plot twist of the century.
