Retail Rents Still Nowhere Near Boom Levels ... Except In Dundrum

Dundrum Town Centre remains the only major retail centre in the Dublin area achieving higher prime rents now than during the pre-crash peak of 2006, according to research from Colliers.

At the moment, retailers are paying around €420/SF for Zone A space at Dundrum, compared with €325/SF in 2006, just a year after the centre opened.

The ability to achieve these prices comes down to it being "the best retail location in Ireland, without exception", Colliers Managing Director and Head of Retail Declan Stone said.

“Dundrum has the best tenant mix, the best names and is in a brilliant area," he said. "It’s got a great food and beverage offer, good leisure and it’s under a covered roof. And it’s a very well managed entity.”

Grafton Street still commands the highest rents in the country at just over €600/SF for Zone A space. However, this is just 68% of the €880/SF peak prices achieved on the street.

The latest notable arrival to Grafton Street is a U.K. interiors and clothing retailer, The White Co., which opened in No. 72, in July. The rent on the extensively refurbished former Karen Millen store, which comprises 9.3K SF of retail space, is €750K per annum.

Meanwhile, headline rents on Henry Street are now on a par with those in Dundrum, but just 60% of the 2006 levels of €700/SF.

One of the most notable recent deals on that street will see Next moving from its current double unit in the Jervis Centre to a new 35K SF flagship store at Nos. 7 to 9. The retailer has signed up to a 10-year certain lease at €1.75M per annum for the unit, which was previously part of Arnotts.

Colliers’ figures also show that Zone A rents at Blanchardstown Shopping Centre have fallen from €315/SF to around €280/SF, while Liffey Valley Shopping Centre is achieving €250/SF now, compared with €360/SF in 2006.