Shoppers of a Different Stripe
Last week, shoppers of an unexpected variety crowded the Jervis shopping center. Apparently, the mall wasn’t just a haven for bargain hunters; it was also the epicenter of real estate speculation. Up to 13 first-round bids were thrown into the ring for the Dublin city center gem, quietly placed on the market by its owners, Paddy McKillen and Padraig Drayne, presumably over tea and scones.
This sale marks the first time the Jervis Center has changed hands since its inception in the ’90s. That’s right, folks—this mall is older than your favorite pair of jeans. It’s one of the last surviving reminders of the last mall boom that doesn’t have a “For Sale” sign from a private equity firm hanging around its neck.
Among the bidders, the usual suspects emerged from the shadows: the Comer Group, US real estate moguls like Hines, and Peter Horgan’s Lugus Capital. Oh, and let’s not forget David Goddard’s Lanthorn, out there hustling on behalf of clients who probably have more zeros in their bank accounts than most of us will ever dream about.
The bidding frenzy followed a surprising trend: Retail parks are being snatched up faster than last season’s fashion. While office spaces are collecting dust like old magazines, retail has somehow become the bright, shiny object in the property investment market. Talk about a plot twist that even Netflix wouldn’t see coming.
Statistics reveal that for the first quarter of the year, retail deals accounted for half the value of all property transactions. So, while many were stuck in post-pandemic shopping trauma, retail fans thrust themselves back into the brick-and-mortar rings. According to the latest EY Future Consumer index, seven out of ten consumers would rather brave traffic and search for parking than click “Buy Now” online. Apparently, we’re all just looking for an excuse to leave the house and miss out on afternoon nap time.
Retail Excellence Ireland’s CEO Jean McCabe opined that people are flocking back to stores, lured by the tantalizing experience of, well, actual customer service and getting to awkwardly navigate around people who are also trying to decide if they really need a seventh pair of shoes. Retailers are responding by opening more stores—because nothing screams “shrewd business move” like adding more overhead.
Interestingly enough, even cosmetics company BPerfect has jumped on the bandwagon, moving from online sales to opening 13 physical stores across the UK and Ireland over the last five years. Apparently, they’ve discovered that actual humans can be more lucrative than email marketing. “When I opened in Blanchardstown, there were tons of empty slots,” said founder Brendan McDowell, perfectly illustrating the ‘jumping in at the right moment’ strategy that can only be acquired through sheer luck and possibly a good fortune teller.
Looking at the conditions, investors still want a discount off retail assets’ asking prices but are realizing that it’s “reaching an inflection point.” Whatever that means, it sounds important, doesn’t it? “Too many empty spaces” could become a term of endearment at this rate. But fear not—there’s a new retail center sprouting in Cherrywood, and rumors of expansions are afoot. Just remember to allow for a little elbow room amidst those crowded aisles. If you can’t find a bargain, at least you’ll find others whose bank accounts are crying harder than yours.
