Shoppers of a different breed crowded Jervis shopping centre last week, and no, they weren’t searching for the latest fashion trends unless “sheer chaos” is now hot off the runway.
You see, up to 13 first-round offers came slithering in for the Dublin city centre mall, which, like a shy teenager, was quietly put up for sale by its owners Paddy McKillen and Padraig Drayne. Apparently, they decided the mall’s time to shine was now—think of it as a late-blooming wallflower at the school dance.
This shopping centre is making its retail debut on the market since the developers (McKillen, Drayne, and their pal Paschal Taggart) swung their hammers and sawed away in the 1990s. It’s stunning how time waits for no one, but in the world of malls, this is one of the few still owned by its creators—like a classic car that refuses to be sold, despite the poor mileage.
Among the eager bidders were some big shots: the Comer Group, the US property mogul Hines, the ever-ambitious Peter Horgan from Lugus Capital, and the pan-European Patron Capital. Even David Goddard’s Lanthorn was in on the action, effectively turning the bidding into an episode of “Who Wants to Be a Millionaire.”
And if you thought this was a mere sideshow, think again. This auction came on the heels of heated bids for Marlet’s tantalizing trio of retail parks across Dublin, Louth, and Tipperary—where an astonishing ten initial bids left everyone as breathless as a marathon runner.
For over a year, retail has been the belle of the property investment ball, raking in capital like a kid in a candy store. The competitively muted market for offices and private rented schemes tempered the excitement, but who would have guessed that retail would rise, phoenix-like, from the ashes of its Covid-era collapse? It’s almost like watching your less-favored cousin win the lottery—strange, yet oddly fulfilling.
Statistics reveal a heartwarming tale of revival. AIB recently unveiled its latest retail report, showcasing a 2 percent increase in in-store spending compared to last year. Apparently, shoppers have rediscovered the joy of an actual shopping bag instead of the all-too-comforting online cart. And according to EY’s Future Consumer Index, seven in ten consumers still prefer the tactile bliss of physical stores over virtual ones. Who knew that a few high-fives and awkward small talk could rekindle romance with retail?
Jean McCabe, the CEO of Retail Excellence Ireland (no, it’s not a fancy version of a “Best Buy” store), claimed that customers are flocking back to stores for the unique “customer experience.” Apparently, this includes standing in long lines for the privilege of handing over your hard-earned cash while contemplating whether to take a good look at the store’s hamster on the wheel. Retailers, in turn, are opening new shops faster than you can say “rent hike” to achieve economies of scale. Someone better alert landlords; it looks like their “Keep Out” signs aren’t quite deterring this folly.
Take Brendan McDowell, founder of BPerfect Cosmetics, who started as an online-only wonder but now boasts 13 physical stores like a proud parent at a school play. Testing the waters with pop-up stores sounds romantic, but it’s really just code for “We were definitely not ready to commit.” And while McDowell enjoys his newfound success, he nostalgically reminisces about a time when chasing better deals was as common as dodging exes at the local coffee shop.
As the shopping saga continues, Camgill Conway, backed by a mysterious Canadian fund, is out in the retail market, scouting for undiscovered gems in a sea of retail properties. They’ve bought a few spots but report that many of them had “queueing retailers” waiting to swoop in immediately after a vacancy opens. It’s a classic case of “You snooze, you lose,” proving that finding a good deal sometimes feels like a competitive sport.
And what does the future hold? Well, there’s a retail centre planned for Cherrywood, but amidst the rising hope, let’s not forget the many grey areas—not all locations are thriving. While some shopping centres have vacancy rates reminiscent of a high school dance, others are thriving like a celebrity at a gala. Just remember, every cloud has a silver lining—unless it’s a shopping cloud at a tertiary location, in which case, you might want to pack a parka.
