Shoppers of a rather peculiar sort flooded the Jervis shopping centre last week, and no, they weren’t storming the sale rack. Instead, they were busy placing bids on the mall that, surprisingly, is more profitable than that hidden sauntering with a credit card every Saturday. Ghosts of developers past were likely rolling over in their fiscal graves as a whopping 13 first-round offers came knocking on the door, courtesy of the owners Paddy McKillen and Padraig Drayne, who, with the stealth of Jedi knights, had quietly placed the center on the market.
Ah, the Jervis Centre: the historical mall that has outlasted more brunch spots than we’ve had hot showers! Developed back in the 1990s by the dynamic trio McKillen, Drayne, and all-around business guru Paschal Taggart, it’s one of those vintage pieces that genuinely didn’t succumb to whatever new “experience” you have on your Instagram feed. Frankly, it’s practically a relic in a world of fast-paced online shopping, and yet here it sits, thriving.
This bidding war, apparently ignited by shopping centre fever, has attracted quite the motley crew of bidders. Reports from The Sunday Times reveal that the Comer Group, Hines from the land of opportunity (the US, I mean), and Lugus Capital have decided to dust off their wallets to join in. In a twist that screams “only in Dublin,” David Goddard’s Lanthorn is also in the mix, probably using glitter-covered dollar bills. For the adventurous among us, the excitement doesn’t end there – as if retail parks in Dublin, Louth, and Tipperary didn’t have enough bids already, the excitement is palpable. It’s like a high-stakes poker game, minus the whiskey and smoke.
In the past year, retail has put on its superhero cape, grabbing the spotlight in the property investment sector, while office sales are over there sulking in the corner with a sad sandwich. Who would’ve thought? While the pandemic had everyone certain that the last brick-and-mortar store would close by 2023, it seems they missed the memo—retail is staging a comeback that could rival any overhyped blockbuster!
Realty Income, the apparently unstoppable American investor, opted for retail instead of casinos (yes, instead of that Las Vegas glitz), purchasing eight retail parks in Ireland with a hefty €220 million tag, assuring us that retail is so back it’s practically trendy. According to AIB, in-store spending rose by a jaw-dropping 2% this year. Incredible! Who knew consumers tired of fighting with their cats to order their essentials online?
According to the latest buzz from the EY Future Consumer Index, a staggering seven out of ten shoppers are apparently ducking the e-commerce frenzy, leaning into the experience of physically shopping instead. Perhaps they enjoy the smell of overpriced lattes? Jean McCabe, the chief executive of Retail Excellence Ireland, insists that the rush to actual stores is fueled by the not-so-nebulous desire for the “customer experience,” which presumably involves feeling good about your life choices while scrolling through racks of clothing.
Amid the quest for retail dominance, Brendan McDowell of BPerfect Cosmetics, who began his empire online (because why take the conventional route?), quickly learned the physical store rush is real. After opening 13 locations while dodging the pandemic limbo, McDowell tells us it was “a good time to open a store” filled with empty units fighting for new tenants (it’s like a bizarre game of musical chairs). In a comedy of errors, he snagged better rent deals and procured more store space than a teenager’s room.
While real estate agents are abuzz with “good yields” and “inflation-proof investments,” the retail market still faces its share of “picked-over” locations. One shudders to think that despite all the excitement, many shopping centres remain drearier than a Monday morning without coffee. And yet, the briskness of retail parks keeps cash flows lively—a little irony for the ages. Welcome to the new retail Renaissance, where location is still vital but superfluous empty stores could use a makeover, or at the very least, an exorcism.
