Irish retail resilient
Published: 01 March, 2017
Latest CBRE bulletin underlines strong occupier demand
Retail occupier interest for Ireland’s prime pitches remains strong with particularly strong appetite from food & beverage occupiers, according to the latest bi-monthly market bulletin from CBRE.
And an increase in residential construction (albeit from a relatively low base) has started to benefit the wider retail sector, with improved occupier interest in retail park schemes being reported over recent months.
However, unlike other sectors of the market which are experiencing an increase in development activity, most projects that are currently underway in the retail sector comprise extension and refurbishment programmes as opposed to new builds. And CBRE expressed concern that the devaluation of Stirling has increased leakage of retail spend to Northern Ireland and to UK websites.
According to Marie Hunt, executive director & head of research at CBRE Ireland, “Appetite for prime investment opportunities in the Irish market has intensified noticeably over recent months with international core capital remaining active buyers, which could actually lead to some further hardening in yields for prime high street assets in due course. However, a heightened perception of risk has negatively impacted demand for secondary assets of late, which could have the opposite effect on pricing for such assets as the year progresses.”
Hunt concluded: “The occupier markets continue to perform well, buoyed in particular by the strength of continued employment generation in the Irish economy.”