Shoppers of a peculiar variety gathered at the Jervis shopping centre last week—not for a good sale, mind you, but for the opportunity to bid on a beloved retail monolith. It turns out that in the bustling heart of Dublin, property is the new ideal love language, as up to 13 eager first-round offers were tabled for the cryptically available retail space. Who knew shopping could come with a side of competitive bidding wars?
After a discreet period of being on the market, the Jervis centre, once a vibrant arcade in the ’90s, is now a bone of contention among property magnates including the likes of the Comer Group—who probably enjoy wearing monocles— and US property investor Hines, who, rumor has it, still can’t find their way out of IKEA. Back in the ’90s, Paddy McKillen, Padraig Drayne, and Paschal Taggart were the masterminds behind this structure, which, much like that one houseplant everyone has, just won’t die.
Every now and then, we get a reminder that retail, as a concept, isn’t dead, but alive and thriving, much like a stubborn vine that refuses to be uprooted. Interestingly enough, the rampant competition is a delightful twist, as other asset classes like offices are just floundering about like fish out of water. Retail has been, well, the belle of the ball in the property investment market, charming everyone with promises of in-store experiences that e-commerce simply can’t replicate—unless, of course, you’re prepared to buy a smell through your computer.
Over a year, retail has emerged from the pandemic like a phoenix, trading in its hatchling form for a stunning plumage of investor interest. The first quarter of this year alone saw in-store consumer spending spike 2% from the previous year—further proof that humans, despite all odds, still enjoy the tactile joy of physically wandering retail aisles while battling in-store snobbishness. Who could resist the allure of deals that require actually leaving the couch?
Concerning construction, there’s been a noteworthy shift. Historical data suggests that the entire retail scene was once dominated by local institutions, mostly named after rain clouds or some equally drab imagery. Many of these assets changed hands, yes, but now the big wigs are back in fashion, and international pension funds are the ones donning the latest trends in retail investment. They’re up for more than just old-age security; they want shopping centres with all the frills and foot traffic.
Take the current market situation where prime shopping centres yield up to 6%—not too shabby for a pastime that involves either browsing or buying an inordinate amount of bath bombs and scented candles! Meanwhile, retail parks continue to be the darling of the investment class, attracting those who prefer ease of navigation to the laboured strolls in a covered mall. The key takeaway? You may still have to pick between artisanal cheese and overpriced trendy clothing, but hey, at least they’re no longer all shuttered!
In the midst of all this retail revival and aspiring tycoons, it’s critical to remember that challenges loom large. Malls in less desirable areas are sad derelicts, waiting for new tenants who are probably the ghosts of previous renters, while high-street giants in other regions stumble as if they’ve just missed the last bus home. The unpredictability of the retail landscape could indeed lead to what some would decry as the “closure crisis.” But don’t fret; history has taught us that with a closure comes a transformation, allowing for fresh brands to flood in and take over the empty shells like vacationers who’ve found a cute cottage advertised on Instagram.
