Today's other stories in brief
Grafton Street ranks lower
Dublin's Grafton Street has fallen from fifth to eighth place in a study of rents on the main streets across the world. Dublin entered the top five for the first time last year but was the biggest casualty this year when prime rents fell by 22.5 per cent. More than half of the world's most prestigious shopping streets have been affected by the economic downturn with 54 per cent of the 274 streets falling back, according to the report by Lisney's international partner Cushman Wakefield.
Hugh Markey of Lisney said the fall in Grafton Street’s ranking was not unexpected and a further fall was likely. “Urgent action needs to be taken to address the decline in the city’s main retail street where footfall is reportedly down over 30 per cent in recent times. This can be partly attributed to the recession, however the user mix, the number of vacant units and the introduction of the College Green Bus Gate are also factors.”
Retail vacancy rate over 20%
The vacancy rate in Dublin retail outlets has risen to 20.67 per cent, putting it 6 per cent above the average for the country as a whole. The latest study by Experian, the global information services company, found that Ireland’s average vacancy rate of 14.1 per cent is 2 per cent higher than the UK and 1 per cent above Northern Ireland.
Jonathan De Mello of Experian says that much of the vacant space in Dublin is “off pitch” or peripheral to the main shopping thoroughfares. Most traders on Dublin’s Grafton Street are unlikely to endorse De Mello’s view that the street “remains as strong as ever in terms of rental tone due to its significant footfall, tourist appeal and retail mix”. Even more surprising is his claim that Grafton Street “is similar to other premium high street locations across Europe” such as Bond Street in London, Champs-Élysées in Paris and Via Monte Napoleone in Milan.
The Experian report also shows that Limerick has the highest vacancy rate of all key centres in Ireland with more than a quarter of the retail space unoccupied. The figure is expected to rise to 27.39 per cent by next February when Cork is likely to have a vacancy rate of 18.54 per cent and the figure in Galway will stand at 14.33 per cent. By then the Dublin figure will be up marginally to 20.81 per cent.
Jewellers for Grafton
Aviva Investors has found a replacement tenant for the Tie Rack store on Grafton Street. A UK company specialising in a new brand of jewellery has agreed rental terms on the shop which has a trading area of 50sq m (538sq ft) and storage at basement and first floor levels. Savills had been quoting a rent of €340,000 on a new lease for the premises.
