Simg and hustle! A different breed of shopper descended upon the Jervis shopping centre last week. Yes, folks, we’re talking about bidders with pockets deeper than a well, as maybe 13 first-round offers were thrown down for the beloved Dublin city mall, quietly sold off by its owners, Paddy McKillen and Padraig Drayne, who probably just decided it was time to redecorate their gold-plated living rooms.
This charming mall has been on the market for what feels like an eternity—well, at least since the ’90s when it was developed by McKillen, Drayne, and business guru Paschal Taggart. It’s practically a historical landmark at this point, being one of the last malls still tethered to its original developers like a nostalgic childhood pet no one wants to let go of.
The lineup of suitors for Jervis reads like a who’s who of wealthy investors: The Comer Group, the suave American property investor Hines, and Peter Horgan’s Lugus Capital must have donned their finest tuxedos to enter this bidding war. Not to mention David Goddard’s Lanthorn, who surely took advantage of a group discount to bid for clients in this wave of retail romanticism.
The bidding frenzy follows a robust reception for Marlet’s triumvirate of retail parks—because nothing quite screams “goodbye, pandemic blues” like a healthy dose of commercial real estate investment. Apparently, retail has been the real estate equivalent of an underdog story, managing to outperform all other property types. Who knew that shopping was still in fashion?
In an era where many declared the death of physical retail as well as humanity’s love for crowded malls—thanks, e-commerce!—the post-pandemic revival has left quite the legacy. Statistics reveal that in-store spending has validated this renaissance, climbing by 2 percent compared to this time last year. Shopping as a spectator sport? Apparently, it’s back in vogue!
According to the EY Future Consumer Index (which sounds like the title of a sci-fi movie), about 70% of consumers prefer physical storefronts for their everyday purchases. Retail Excellence Ireland’s Jean McCabe proclaimed that shoppers are flocking back to stores for that irreplaceable experience. Meanwhile, retailers are busy opening more stores—because who doesn’t want to run a mini empire of brick-and-mortar sites in a time when online shopping is just a click away?
Meanwhile, Brendan McDowell of BPerfect Cosmetics is proving that it’s possible to open physical stores faster than you can say “aesthetician.” Starting with a mere online presence, he’s now sprouted 13 physical shops like some miracle skincare sponge in a crowded marketplace. Pop-up stores? Check. Better leases? Double check. A plan to outsmart the competition and stick around? That’s a resounding yes!
Retail parks are experiencing their transformation into something of a real estate elite, attracting foreign investors like moths to a flame—and what a pretty flame it is! With yields looking as positively swoon-worthy as a summer romance, it appears that retail parks have reached their peak status, heading straight back into the arms of institutional ownership. Buckle up, because the retail ride appears to have taken a sharp turn into the glamorous lane.
Yet in this charmed life of retail resurgence, there’s the sobering reality that some locales are hardly thriving. Shopping centers in less-than-great neighborhoods are exhibiting vacancy rates high enough to make a ghost town green with envy. Fear not, though: Bannon suggests that store closures could lead to a favorable tenant mix, paving the way for fresh brands to strut their stuff on the retail catwalk—and possibly inviting in that quirky local artisan selling artisanal potato chips.
