Shoppers of a distinct nature crowded Jervis shopping centre last week—not for discounts, but for a slice of prime real estate! Yes, you read that right; in a surprising twist, the shopping mall put on the market by its owners Paddy McKillen and Padraig Drayne saw a flock of 13 first-round offers. It’s almost like lining up for a Black Friday sale, but instead of the latest gadget, folks were vying for ownership of retail property.
This is the first time since its inception in the 90s that this shopping centre has been for sale, making it a veritable time capsule of consumerist history. It’s like finding an ancient artifact, except instead of a dusty old vase, it’s a bustling centre still proudly possessed by its original developers—a rarity in a landscape dotted with private equity vultures.
Among the bidders was a fascinating cast of characters: the Comer Group, the US property magnate Hines, and a gaggle of investment groups that sound like they belong in a boardroom debate more than a shopping spree. David Goddard’s Lanthorn even pitched in—but don’t ask him about his marketing budget; it seems entirely mythical.
The auction buzz followed a whimsical frenzy for Marlet’s trio of retail parks, which received a mere ten initial bids. One couldn’t help but think that it’s a less intense version of “Hunger Games,” only this time the prizes are less fatal and more, well, concrete—quite literally.
For over a year, retail has been the shiny star of the property investment world, drawing capital like a moth to a flame. Meanwhile, bidding wars for office spaces are flatter than a pancake. But hold on—this dramatic resurgence in retail was utterly unexpected after the doomsday prophecies that surged during the pandemic. One could argue that bricks-and-mortar shopping is staging a dramatic comeback—who knew we just needed to remove all our furniture to make room for this latter-day Renaissance?
In the first three months of this year alone, estate agents reported that retail was not just participating in the property game; it was leading the charge, responsible for a whopping 50% of all transaction value. Didn’t see that one coming in the wake of e-commerce doom-sayers!
And then there’s Realty Income, the US investor that’s dropped $950 million on a Vegas casino—because apparently, $50 million on a shopping centre isn’t quite as thrilling. They’ve now bought eight retail parks for a cool €220 million and are rumored to be the favored suitor for Marlet’s retail portfolio—talk about retail therapy gone wild!
Statistics back this retail renaissance with optimism sharper than a discount coupon. AIB reported a 2% year-on-year increase in-store spending in the first quarter. The EY Future Consumer Index noted that a staggering 70% of consumers casually prefer in-person shopping to the online experience—perhaps they enjoy fighting over items in-store rather than clicking ‘add to cart’ from their couches.
Retail Excellence Ireland’s CEO, Jean McCabe, quipped that customers are “returning to stores for the customer experience.” As if those mystical sensations of buying a product after taking it for a test drive can be felt through a screen. Retailers, on the other hand, are opening more stores to become the middle-aged equivalent of get-rich-quick schemes. Seriously, expect shopping centres to morph into quirky destinations that feature arcades and artisanal cheese shops.
BPerfect Cosmetics’ founder, Brendan McDowell, a real-life modern-day alchemist, starting by selling online, has now opened 13 physical stores. Just five years ago, they were testing out pop-up stores as if they were toddler monorails before deciding to invest seriously. If that’s not an entrepreneurial glow-up, I don’t know what is. But here’s the kicker: the shift from online to physical stores not only results in better security but also allows for the “negotiated half-off” cookies on rent and extra time off for good behavior—uh, I meant for negotiating terms.
The retail landscape continues to shift as institutions scramble to adapt. Max Reilly from JLL remarked that retail parks are becoming the cool kids on the block again, with good yields and less management stress. Well, it looks like the chickens have come home to roost—except these are high-yield chickens that have somehow learned to fly.
So, while some shopping centers sit vacant like that old sweater in the back of your closet, opportunities are ripe for savvy investors to swoop in and snag decent returns. The secret sauce? Less construction, strong demand, and a sprinkle of nostalgia. Irish developers may find themselves dealing with eager buyers looking to turn their brick-and-mortar daydreams into reality—no ghost malls here, folks! Instead, it’s a return to the glory days where your shopping experience comes with actual foot traffic—and maybe even a free cookie to boot!
