Food & Beverage Operators Drive Retail Demand — But Retail Parks Face Viability Gap
Dublin’s food and beverage sector has driven a surge in retail leasing activity and a steep reduction in vacancies, according to CBRE’s latest retail market report.
Headline F&B deals include a 20-year lease on Westmoreland Street for Gloria by Big Mamma, while UK street food brand Mowgli will make its Irish debut with a restaurant on South Great George’s Street. The Ivy Asia has committed to a 25-year lease on Dawson Street, with an opening planned before year end. Chef Mark Moriarty is also set to open a chef’s table and test kitchen at Iput’s Wilton Park.
Operators, including Lina Stores and Joe & the Juice, are also actively scouting locations in the city centre, CBRE said.
In July, the €44M redevelopment of Dublin’s Victorian fruit and vegetable market started, a decade after planning permission was first granted. The two-year project will see the conservation and restoration of the 127-year-old market building on Mary’s Lane and will house at least 80 stalls, a restaurant and food demonstration space, and a farmers’ market, Dublin City Council said.
In addition, in June, the €3.6M indoor food hall Priory Market opened in Tallaght. Operated by social enterprise Partas, the venue houses 15 artisan food vendors in a project backed by Ireland’s Immigrant Investment Programme.
However, there have been some setbacks. In 2023, the Martin Barry Group unveiled plans to transform Dublin’s vacant St Andrew’s Church on Suffolk Street into a Manifesto Market food hall. But late last year, a disagreement over responsibilities for conservation and fit-out of the historic building with landlord Fáilte Ireland led to the project's collapse.
In retail generally, CBRE said that competition for prime high street units has intensified, pushing vacancy rates down to their lowest level since before the pandemic. Grafton Street vacancies have fallen to 4.4%, while Henry Street stands at 6.4%, thanks in part to new entrants such as Lovisa, Arket, Normal, Accessorize and Dylan Oaks.
Shopping centres are also performing strongly. At Dundrum Town Centre, Zara is expanding its footprint by 40% to over 37.5K SF, while Pandora has taken a new unit and Pull&Bear has tripled its store size. JD Sports reopened its expanded 21.5K SF store in July. At Liffey Valley, Musashi and Wingstop are among the latest arrivals.
However, despite strong occupier demand, retail park development has stalled due to what CBRE called a “viability gap” between construction costs and capital values.
“The current viability gap in retail park development is a real challenge, and unless addressed, it risks leaving communities underserved. At the same time, investor appetite remains strong, as evidenced by the competitive bidding for Jervis Street Shopping Centre. This signals confidence in the long-term fundamentals of Irish retail,” CBRE Director Colin Richardson said in a statement.
