Shoppers of an unusual variety flocked to Jervis shopping centre last week. Perhaps it was the allure of bargains, or maybe a mass gathering of those fascinated by capitalism at its finest. Who can say? What we do know is that up to 13 first-round offers were thrown into the ring for the Dublin city centre mall, which its owners, Paddy McKillen and Padraig Drayne, decided to place on the market without so much as a whisper. Talk about a stealth sale!
Believe it or not, this gem of a shopping centre hasn’t graced the market since its birth in the ’90s, courtesy of the aforementioned duo and one Paschal Taggart. Yes, it’s one of the last bastions of the era where developers—like good parents—held on to their creation instead of selling them off to the highest bidder at the first sign of a recession. Shocking, I know.
Among the eager bidders were the likes of the Comer Group, US property mogul Hines, Peter Horgan’s Lugus Capital, Patron Capital, and the infamous David Goddard with his Lanthorn. Quite the financial A-list—though one has to wonder how many bags of flaming hot cheetos these big shots brought to the table.
The enthusiasm of bidders hasn’t been dulled by the gritty backdrop of recent retail statistics. The auction came on the heels of strong interest in Marlet’s retail park trio, which secured ten initial bids, presumably following a nationwide tour of retail parks to pitch their offerings. One has to wonder if they handed out brochures with flashy pictures of leisurewear-clad families happily shopping.
For more than a year, retail has been the golden child in the property investment family, attracting capital like moths to a designer flame. Meanwhile, the office block sales have seen as much action as a middle-aged rock band on a comeback tour—hint: not much. Who could’ve guessed that in a post-COVID world we’d throw brick-and-mortar retail a revival party?
According to AIB’s latest retail report, in-store spending actually rose by 2% in the first quarter of this year. Shocking news for those eagerly anticipating the demise of physical retail Christmas lights. You could swear that consumers have decided in-store browsing is back on the menu, just like mom’s meatloaf. Thank you, various pandemics, for making us appreciate the good ol’ days.
Jean McCabe, head of Retail Excellence Ireland, claimed shoppers are flocking back for the “customer experience.” Because nothing screams “luxury” like waiting in line just to find out the cashier is out of change. She adds that many retailers are expanding into more physical locations. Is this a sign of confidence, or did someone finally realize that online shopping isn’t quite as glamorous at 3 AM in pajamas?
All signs suggest that the retail scene is bouncing back, complete with bustling shopping centres and improved tenant mixes including entertainment venues. This will undoubtedly give newcomers a leg up and make those packed parking lots look like rave parties. However, the real question remains: Are retailers prepared for the inevitable return of the after-Christmas sales chaos and desperate gift returns?
In a surprising twist, even BPerfect Cosmetics, a beauty retailer that had its start online, has now opened 13 physical stores as if they’re operating a fast food chain. Perhaps they’ve announced plans to turn vacant mall units into pop-up beauty salons, creating a multi-tasking beauty empire. Their biggest claim to fame? Short-term leases and flexible rent options, because who doesn’t love a lease agreement written with the fine print of a novel?
Although there are still some rough patches in retail—a trend that seems to involve British retailers quickly adapting to local markets—analysts are optimistic. Despite occasional bankruptcies and closures, the space left behind is often rapidly reclaimed by new names, echoing the age-old adage: “When one door closes, another opens… unless it’s a mall door, where you’ll likely have to wait in line.” Retail is alive and kicking, and frankly, it looks a little bloated but in a good way—like a Thanksgiving turkey after a full feast.
When it comes to investment, remember: the yields are still on a roller coaster, with shopping centres offering up to 6% returns and even retail parks pumping out 6.5%. So, is it time for a retail renaissance? Certainly! Just don’t forget to bring your shopping bags—and maybe a sense of humor, because shopping is always better when you can laugh about it.
