Somewhere between the thrill of a retail heist and the mundane shuffle of regular shopping, a different breed of shopper swarmed Jervis shopping centre last week. No, they weren’t fighting over the last pair of discounted shoes; they were brandishing first-round offers—thirteen of them, to be precise. It’s like Black Friday arrived but the deals were all in the boardroom.
You might say this dramatic turn came courtesy of owners Paddy McKillen and Padraig Drayne, who mildly whispered the mall onto the market. Notably, this is the first time Jervis has dared to look for a new suitor since it was lovingly birthed from a corporate womb back in the ’90s. And so, it’s one of the virtually extinct malls still monopolized by its original “parents.”
Among the bidders were some well-heeled entities: the Comer Group, the American property mogul Hines (because apparently “the landlord” wasn’t quite regal enough), and various other dignitaries of the investment world. Believe it or not, even David Goddard’s Lanthorn, acting on behalf of clients, decided to adorn the bidding circle. Gosh, it sounds like a scene from a financial version of “The Hunger Games.”
Meanwhile, in a masterclass of timing, retail has become the belle of the property market ball, luring a staggering amount of capital. While other sectors dragged their feet, sulking in the shadows, retail stepped into the spotlight, draped in glitter and “we survived COVID” rhinestones. In a stroke of irony, the retail revival stands in stark contrast to earlier predictions that brick-and-mortar stores would become museum pieces.
The 2023 statistics are more uplifting than a double shot of espresso on a Monday morning. A newly released retail report from AIB indicates that in-store spending climbed 2 percent compared to the previous year. Meanwhile, a full 70 percent of consumers, like sheep flocking back to familiar pastures, preferred going physical for their everyday shopping needs. It appears the death of retail was wildly exaggerated, and the phoenix of shopping is rising like a caffeine-fueled night owl.
Jean McCabe, head honcho at Retail Excellence Ireland, remarked that customers are flocking back for “the customer experience.” A shocker, I know! It’s as if humans enjoy the thrill of being served in-person while surrounded by delightful distractions like sales associates rather than scrolling mindlessly. Retailers are responding by opening more stores—kind of like opening another bag of chips when the first one is empty—hoping to achieve economies of scale.
Enter Brendan McDowell, founder of BPerfect Cosmetics, who launched 13 physical stores after initially dipping his toes in the online water. It turns out people like touch—especially when it comes to makeup, or else you’re just throwing darts in the dark. “When we first opened in Blanchardstown in 2022, there were a lot of empty units,” he disclosed, revealing this curious correlation: fewer shoppers can lead to delightful negotiations for short-term deals and—even more shockingly—longer rent-free periods. Now there’s a silver lining worth exploiting!
In a twist of fate, retail parks are experiencing a renaissance adorned in vibrancy and a dash of intrigue. Institutional owners, particularly international pension funds, are re-emerging like breakfast at a bed and breakfast: surprisingly welcome and slightly awkward. Bannon, a prominent commercial property agent, paints a vivid picture of a changing landscape with more than 50 shopping centers once owned by private-equity firms now gracefully transitioning to beloved institutional ownership. The new auction for Jervis is practically an episode of “The Great British Bake Off,” only with fewer pastries and a lot more money floating around.
As the world keeps spinning, it turns out that while shopping may seem tumultuous, there’s a vast expanse of opportunity for investors ready to dive in. New retail spaces are branching out, albeit slowly and cautiously, as the challenges of construction costs loom large like an ominous cloud over the sunny prospects of retail. But let’s not forget, the cherry on top of this complex cake is the fact that occupancy rates are soaring, close to 100 percent, suggesting that amid chaos, some semblance of order—albeit retail-tinged—is still alive and well.
