Shoppers of a rather peculiar kind flocked to Jervis Shopping Centre last week, proving once again that retail therapy isn’t just for the average Joe. No, these were serious bidders—up to a staggering 13 of them—swooping in like vultures over a prime piece of real estate as the Dublin city center mall was quietly offered for sale by owners Paddy McKillen and Padraig Drayne.
You see, it’s not every day that a shopping center goes on the market, especially one that hasn’t been sold since the 1990s when it was “developed” with all the charm of a mallrat’s fantasy by McKillen, Drayne, and the ever-buzzy Paschal Taggart. It stands out as one of the last remaining relics from the golden heyday of shopping centers—still firmly in the grip of its creators, like a stubborn child refusing to let go of their beloved teddy bear.
Speculation ran rampant as rumors circulated about the identities of the high-stakes players who were bidding. Among them were the illustrious Comer Group, as well as Hines, the US property investor, making this sound like a game of Monopoly where everyone decided that buying up the blue properties was no longer cool. Not to be left out, Peter Horgan’s Lugus Capital and Patron Capital also threw their hats in the ring, proving that the auction scene has become the new “it” place to be.
In a strange twist, the auction was spirited off the heels of strong bids for Marlet’s trio of retail parks—a frenzy that saw ten initial bids and left onlookers wondering if retail parks will soon be as popular as pet rocks. Interestingly, for over a year, the retail sector has been performing like a champion, attracting the kind of capital once reserved for Bitcoin and NFTs—because, obviously, who needs offices when you can have a well-placed Starbucks?
According to estate agents, the retail segment accounted for half of all property deals in early 2023, with international eyes darting towards investment opportunities as if they were watching a fast-paced competition. Realty Income, based in the United States and known for its eye-popping investments (like the $950 million splash on the Bellagio casino), made a sizeable bet this year by buying eight retail parks from Oaktree Capital for €220 million. Unsurprisingly, it became the preferred bidder for Marlet’s retail park portfolio. Let it be known—the retail renaissance is back, and it’s charging at you with shopping bags in both hands!
The naysayers who proclaimed the death of in-store shopping during the pandemic can now put their concerns to rest; the statistics show that in-store spending rose by 2 percent over the same time last year, like a phoenix rising from the ashes of e-commerce’s wild claims. AIB even pointed out that folks are opting for tangible shopping experiences, much to the chagrin of their “online exclusive” memberships.
According to retail sage Jean McCabe from Retail Excellence Ireland, shoppers are returning to stores for the “customer experience” rather than soul-crushingly scrolling through endless online options. “Retailers are flocking to open more stores like it’s the Gold Rush,” she said. Who knew that people missed the delightful thrill of pickpockets and bad parking? Shopping centers are even updating tenant mixes and adding entertainment venues and food offerings as part of a master plan to make shopping fun rather than just… well, shopping.
As more space is taken up by enterprising brands trying to fill the void left behind by unlucky retailers, one can’t help but wonder if retail parks are about to become the new club scene—mature wannabe moguls strutting around in designer shoes while contemplating their next big investment in a gourmet food truck. So sit tight, folks. The era of funky pop-ups and unexpected couples’ cooking classes is just beginning.
