Shoppers of a rather different variety flocked to Jervis shopping centre last week—think less about that new pair of shoes and more about investment portfolios. Yes, you read that right; this isn’t your average retail therapy session, but rather an auction extravaganza for Dublin’s city centre mall, quietly put on the market by its owners, Paddy McKillen and Padraig Drayne.
Now, mind you, this isn’t just any shopping centre. This gem was developed by a trio of friends—McKillen, Drayne, and the ever-ambitious Paschal Taggart—back in the glamorous 90s, when hair was big, and shopping centres were even bigger. It marks the first time this chic marketplace has hit the auction block since its conception. A rarity indeed, as it’s one of the last remaining shopping centres from that era not in the hands of a faceless corporation.
Rumor has it that among the bidders, trying to snag this shopping paradise, were heavyweights like the Comer Group and US property investor Hines—sounds like a lineup for a Hollywood blockbuster. The excitement echoes the same fervor that surrounded Marlet’s trio of retail parks, which, shockingly, also attracted ten initial bids. Who knew retail could be the new gold rush?
For over a year, retail has strutted its stuff in the property investment market, not like a peacock but rather like a lion at the top of the food chain, raking in the biggest share of the capital pie. While the office and rental scene struggles like a shy kid at a party, retail is flipping the narrative—who would have thought the apocalypse of brick-and-mortar stores might just be exaggerated hype?
During the first quarter of this year, this retail wonderland accounted for half of all deals, according to estate agents who are now handling more than just armpit deodorant and scented candles. International buyers are swarming the scene, attracted like moths to a flame, with U.S.-based Realty Income making waves by investing nearly a billion dollars in retail parks. It’s safe to say the “death of retail” has been put on hold, as consumers strut back to physical stores for that elusive experience known as ‘shopping’. Fancy that!
Statistics show that in-store spending has risen by a staggering 2% compared to last year. Talk about a comeback! The EY Future Consumer Index also revealed a shocking truth: seven out of ten consumers now prefer real-life shopping rather than clicking through web pages at home in their PJs. Jean McCabe, an industry expert and retail whisperer, explains that customers are returning for the “customer experience”—not to be confused with an experience like dentist visits.
But wait, there’s more! Shopping centres are undergoing glow-ups akin to reality TV contestants, reshaping their tenant mix to include entertainment venues and a cornucopia of foodie options. Even Brendan McDowell, mastermind behind BPerfect Cosmetics, has leaped from online sales to opening 13 physical stores. He scooped up vacant units during the pandemic like they were on sale and has plans to expand. Talk about capitalizing on a crisis—if there’s a business school for that, sign him up!
So here we stand, at the crossroads of modern retail. The rise of retail parks heralds a new era, as they make a comeback like your favorite 90s band at a summer reunion tour. International investors, equipped with hefty wallets, are circling like sharks, eager to snap up these shopping havens at decent returns. And yet, let’s not forget the Tetris-like reality that remains. With the last shopping centre erected over a decade ago, it might just be wise to hang onto your shopping bags for dear life unless you enjoy navigating vast, empty spaces.
In a nutshell, the landscape is shifting, with new contenders stepping into the limelight, presenting themselves like vying contestants on a reality show. As we bid adieu to failed retailers and say hello to fresh opportunities, it appears retail isn’t just back—it’s reloaded and ready to thrive. Go on, treat yourself to that shopping spree; after all, it’s practically an investment now!
