Shoppers of an unusual sort flocked to the Jervis shopping centre last week, but don’t worry, it wasn’t for a flash sale on orthopedic shoes or discount fruitcake. In fact, up to 13 offers were thrown at this Dublin city centre gem, courtesy of its owners, Paddy McKillen and Padraig Drayne, who have apparently decided to let go of this beloved mall like a parent waving goodbye to their college-bound child.
This marks the first time Jervis has been available for sale since its creators—McKillen, Drayne, and the charismatic businessman Paschal Taggart—unleashed it upon the world in the 1990s. It has been noted as one of the last remaining shopping centres still clutched in the loving grips of its original developers. As it turns out, they weren’t kidding when they said fond memories are hard to part with!
Among the eager bidders were the usual suspects: the Comer Group; the US property mogul Hines; Peter Horgan’s Lugus Capital; Patron Capital; and David Goddard’s Lanthorn, who apparently brought a whole client entourage to the bidding party. If only they had treated it like a high school prom—who knew malls had such social circles?
In other thrilling news, strong bids have also been rolling in for Marlet’s trio of retail parks scattered throughout Dublin, Louth, and Tipperary, proving once again that the pandemic has only sharpened everyone’s spending blades.
It appears retail has taken up the role of the ‘favorite child’ in the property investment game, attracting heaps of cash while the office sector sulks in a corner, nursing a Midlife Crisis. Despite earlier predictions of retail’s demise during the dark days of Covid, it seems to be roaring back like a Phoenix, albeit with slightly less fire and a penchant for online shopping.
Recent statistics even show that in-store spending has risen by 2 percent compared to last year, following a notable uptick in physical shopping during the fourth quarter. It seems consumers have discovered that the tactile pleasure of feeling a cashmere sweater is indeed hard to replicate through a screen.
Jean McCabe, the chief executive of Retail Excellence Ireland, sees shoppers making a glorious return to stores, eager for that elusive ‘customer experience’ everyone keeps talking about, while retailers cautiously expand their brick-and-mortar realms, like cautious deer venturing past the edge of a forest. Behold—the new formula: bring in more entertainment, food options, and, of course, a dash of more local brands!
Meanwhile, wandering through the wilds of retail evolution, Brendan McDowell, founder of BPerfect Cosmetics, who once only sold online, decided to join the physical world and has opened a whopping 13 stores in the UK and Ireland. Apparently, if you can’t beat the bricks-and-mortar revolution, join it! When McDowell opened his first pop-up, he secured short-term deals at locations like Blanchardstown and Tallaght, proving that a strategic approach really pays off. “Good time to open a store,” he says, as if negotiating a better rent is akin to solving the Riddle of the Sphinx!
Karl Stewart, head of retail at Cushman & Wakefield, mused about retail’s resilience over the past 15 years, as if it were a long-lost relative wandering back into the family reunion. What’s equally fascinating is the diverse cast of buyers interested in shopping centres, with yields ranging from 6 to 6.5 percent, proving that investors have a penchant for returns almost as much as they enjoy free samples at Costco.
As the retail landscape shifts, the age-old narrative of “bricks versus clicks” is being rewritten, one auction at a time. And while the future may hold surprises for landlords and retailers alike, it seems that resilient retail is holding its ground—and perhaps even doing the cha-cha. With new players stepping into the arena and an appetite for physical spaces on the rise, one can only wonder what will come next—perhaps a shopping mall revival renaissance full of artisanal hand-knit woolen goods and organic gluten-free snacks? Who wouldn’t want to shop while simultaneously feeling 100% virtuous about their purchases?
