Stroll through the Jervis shopping centre? Last week, it resembled a high-stakes poker game—if poker involved a lot of bargain-hungry investors and fewer chips. Who could resist the allure of a Dublin mall that hasn’t been up for grabs since the 1990s? Owners Paddy McKillen and Padraig Drayne put it on the market, and let’s just say, potential buyers didn’t just show up; they arrived with a full buffet of offers. Up to 13 first-round bids were presented, proving that retail therapy has taken a serious turn for the dramatic.
Somewhere in the neon glow of this shopping battlefield, the likes of the Comer Group, US big-shot Hines, and even David Goddard’s Lanthorn decided it was their time to shine. One could easily picture a shark tank, but instead of sharks, it’s filled with property tycoons eyeing a piece of real estate pie that’s been baking since before you were dialing up on AOL.
This shopping centre is quite the antique—crafted by the hands of McKillen, Drayne, and Paschal Taggart during the ’90s, it’s like that one vintage shirt that everyone pretends is “retro” while secretly marveling at how it survived the Y2K scare. It’s a relic of a time when malls weren’t just spiritual temples for food courts and discounted sweaters.
While many sighed over the supposed demise of retail during the pandemic—like everyone’s favorite melodrama gone wrong—those reports were exaggerated, much like your uncle’s fishing stories. Real estate agents, armed with calculators and optimism, reported that retail has been the superstar of the property investment market for over a year. Remember when everyone thought online shopping was the villain? Well, it turns out retail stores are back in style, like the bonus episode no one knew they wanted.
US-based Realty Income, which acquired eight retail parks this year while essentially performing the investment equivalent of a victory lap, is in on the action too. Their €220 million spree is like watching a toddler at a candy shop, throwing money around but somehow making it look effortless. Even the EY Future Consumer index had the audacity to declare that 70% of people still prefer “in-person” shopping. Sure, because who wouldn’t want to dress like a mannequin and dodge swarms of holiday shoppers?
Jean McCabe, CEO of Retail Excellence Ireland, weighed in, which is just fancy for saying she’s noticed people returning to stores—not necessarily for the fabulous deals, but for the “customer experience.” Imagine that! Gathering around sales racks now counts as socializing. Retailers are strutting their stuff by opening more physical locations, revamping their tenant mixes, and including entertainment venues. Yes, because what could be better than binge-watching your favorite Netflix series after a full day of “retail therapy” at the mall?
As property ownership shifted gears, Brendan McDowell, founder of BPerfect Cosmetics, went from online selling to having 13 physical stores. Talk about a glow-up! He recalls opening a store in Blanchardstown amidst an empty mall, and if that isn’t the retail version of “How to Make Lemonade Out of Lemons,” I don’t know what is. It seems the in-person shopping experience is the new black, and McDowell is riding that stylish wave with hopes to expand even more.
While real estate entities scramble for higher yields and better all-cash offers, the retail landscape is indeed shifting. With previous owners like Joe O’Reilly storing their shopping assets away like treasured family heirlooms, many pockets of shopping centers are now under international pension fund ownership. With yield rates for prime locations running around 6% and retail parks slightly higher, it’s hard not to picture buyers being extremely careful with their bargaining chips—like a toddler holding onto a last cookie before a sibling arrives.
Now, here’s the kicker: for all the retail glitz and glamour, the ghosts of bankrupt retail past still lurk. Tertiary shopping centers have a vacancy rate that could rival a grammar school dance floor. As much as we love a comeback, some retailers are still in dire straits, trading their units like hot potatoes. But if retail’s enduring saga teaches us anything, it’s this: store closures can be the secret sauce for a fresh tenant mix. Out with the old, in with the new—this is less of a tragedy and more of a Shakespearean comedy, minus the tragic endings.
