So, last week, the Jervis shopping centre transformed into an exclusive club for bidders instead of shoppers. Apparently, the real high-rollers were busy offering serious cash for a mall that had been quietly dumped on the market by its owners, Paddy McKillen and Padraig Drayne—because who wouldn’t want to invest in a physical piece of retail history from the ’90s? That’s right; because nothing screams “cool” like a shopping centre that’s a relic of a different era.
This beauty, a throwback to the days of flared trousers and boy bands, is one of the few shopping centres still owned by its original developers. Ironically, as Dublin’s skyline evolves, it seems our love for the 90s is still going strong… at least in the world of shopping centres.
Among the ‘serious’ bidders—let’s be real, when do folks like the Comer Group and US property investor Hines not get involved? They either saw dollar signs or a rare Pokémon card. Others throwing their hats in the ring included the overlooked Lugus Capital and Patron Capital, alongside David Goddard’s Lanthorn, who apparently believes they can turn mall rats into actual capital rats.
The excitement didn’t stop there; hot on the heels of this spectacle was the auction frenzy for Marlet’s trio of retail parks that received a whopping ten initial bids. Who knew retail was the Beyoncé of the property investment market? Evidently, it’s the only segment not discouraged by the pandemic, standing strong while office sales are as peppy as a sloth on sleep medication.
In a plot twist typical of a bad rom-com, reports of retail’s demise were clearly exaggerated. Even the statistics supported this twist. AIB waved its magic wand and revealed that in-store spending rose by a charming 2 percent in the first quarter of this year. Consumers love using bricks-and-mortar outlets like a trusty old pair of shoes—dusty, but comfortable.
Jean McCabe, CEO of Retail Excellence Ireland, noted that customers are returning to stores “for the customer experience.” Wow, it’s almost like humans miss actual human interaction, shocking. Retailers are evidently taking note, professionally opening more stores than an eager kid at a lemonade stand, all in pursuit of those delightful economies of scale.
Retail parks are, however, back in vogue even as some older centres are turning into echoes of their once-bustling selves. Ironically, the average yield on shopping centres is a sweet 6 percent, spiraling around elite investment circles as if they were Olympic gymnasts. But while we get lost in discussions about average yields, let’s not forget: for every successful venture, there’s a long list of closed stores waiting for new tenants to take a gamble on retail’s new waves. Perhaps there’s hope after all—just like every failed romantic relationship can lead to a better partner… or at least a fun one-night stand.
And as if that weren’t enough, the ongoing saga of retail closures continues—with Debenhams transforming into a smorgasbord of quirky new tenants. Apparently, it’s like a game of musical chairs, only instead of chairs, it’s shops, and no one wants to be left standing. Perhaps it’s a sign of the times that retail is changing faster than fashion trends; just remember to bring your wallet—and maybe a good laugh—while navigating your shopping adventures.
