Shoppers of a rather peculiar nature flocked to Jervis shopping centre last week, proving that the only thing more exciting than retail therapy is the chance to bid on a mall like it’s a rare collection of Beanie Babies.
Up to 13 first-round offers crashed onto the table for the Dublin city centre mall, which its owners, Paddy McKillen and Padraig Drayne, decided to sell as quietly as one would try to sneak cookies out of the jar. This is the first time the shopping centre has changed hands since the 1990s—a decade notorious for questionable fashion choices and even worse hairstyles.
Among the bidders were names you might expect to see in a poker game rather than a shopping spree: The Comer Group, US property investor Hines, Peter Horgan’s Lugus Capital, and Patron Capital. It was like a high-stakes game of Monopoly where nobody really wanted to land on Boardwalk but didn’t mind owning the local mall.
This auction comes on the heels of an intense bidding war for Marlet’s trio of retail parks, where eager bidders launched their best offers like kids throwing snowballs—ten initial bids were reportedly tossed about. Retail is apparently the only market that’s still feeling like it’s on a caffeine high, while office spaces and private rentals are gathering dust like last year’s Halloween decorations.
In fact, retail has become the darling of the property investment scene over the past year, attracting so much interest it could probably open a fan club. According to estate agents, retail accounted for a staggering 50% of the total deal value in the first quarter. This is the equivalent of eating half the cookies because you “just couldn’t resist.”
And if you thought the post-pandemic narrative of “the death of brick-and-mortar” was the last page of a tragic novel, you’d be wrong. Retail is making a comeback, like your uncle at Thanksgiving who insists he can still do a backflip. A recent AIB report showed that in-store spending rose 2% over the last year. Apparently, people are craving the tactile experience of shopping—who knew? Maybe it’s that irresistible scent of pretzels wafting through the air.
Meanwhile, Jean McCabe, chief executive of Retail Excellence Ireland, states that customers are “returning to stores for the customer experience.” Yes, apparently staring at a computer screen isn’t as thrilling as finding that last pair of boots in your size. Retailers are now opening more stores, not just for the sake of it, but to cash in on the fact that even the most diehard online shopper occasionally needs some tactile validation. So, they’re changing up tenant mixes—think more entertainment venues and fewer empty storefronts filled with the echoes of past retail dreams.
For those who are contemplating their next shopping spree, remember: the last retail park development was back in 2007, reminding us that the only thing scarcer than a good parking spot is new retail space. So if you’re thinking of building new parks, just know you’d likely have to spend more than you would at a sale on a pair of shoes that didn’t fit properly anyway. But it isn’t all doom and gloom—retail parks are reportedly near 100% occupancy, proving they’re still the hottest ticket in town, even if they’re just of the plastic variety.
In conclusion, while the retail market has its ups and downs, it seems to be in a better shape than your fridge after a weekend of grocery shopping. With a mix of international investors and local players ready to pounce on the next big thing, one can only imagine what new adventures await us in the wild world of retail. Stay tuned for more on this shopping escapade, because if there’s anything consumers love, it’s a good shopping story with a twist—or maybe just a great discount.
