The scarcity of vacant retail units in the greater Dublin area due to the continuing strength of the retail market means that there will be little opportunity for seasonal retailers to acquire short-term lets for the high-volume Christmas period.
Vacancy rates are at a historically low level in Dublin city centre, where demand for high-profile locations exceeds supply. While the majority of Dublin-based agents have no retail outlets suitable for short-term letting on their books at present, many report that there has been a high level of calls enquiring about possible opportunities, showing that demand remains high.
"Demand is always strong for short-term lettings, especially at this time of year, but there is no availability at present, and unfortunately we are not anticipating that there will be many coming on the market," reports Fintan Tierney of Lambert Smith Hampton. The lack of availability is a good indication of the strength of the retail market at present, according to Tierney.
Most of the short-term lettings available at this time of year are premises for sale, where the agent and landlord have decided to take advantage of the market. Douglas Newman Good Commercial has a 420 sq ft retail unit on Clarendon Street available to let on a short-term lease for up to six months.
A rent of £600 (€761.84) per week, exclusive of rates, is being quoted for the premises, which used to trade as The Hat Studio. Located at the junction of Clarendon Street and Chatham Street, just off Grafton Street, Douglas Newman Good is seeking £120,000 (€152,368) and quoting an annual rent of £25,000 (€31,743) for the lease of the ground-floor unit. The lease term is for 25 years with rent reviews at five year intervals.
Carl Byrne, agent for the property, expects there to be a very high level of interest. The premises may possibly be let on a month to month basis. "A lot of charity organisations and seasonal retailers usually look to set up temporary outlets at this time of year, most are looking for space or kiosk-type operations in shopping centres," he said.
While Insignia Richard Ellis Gunne has a number of vacant units at present, none is available or suitable for seasonal letting. "Any empty units currently on our books are either under negotiation or the landlords are holding out for long-term lettings, a number of these may change their minds in the weeks approaching Christmas but I suspect it will be too late then to do anything," said Cormac Kennedy of the agency.
A two month period between the end of November and the end of January is the standard term for short-term lettings of this nature. Rents are calculated to include the high costs and inconvenience associated with such lettings.
"While there is space potentially available that could be let at a premium, at the end of the day it may not prove worthwhile for a landlord. The costs associated with short-term lettings - licences, VAT, rates, service charges, negotiation fees - are high for a four to six week letting period. So the net result to landlords is not always positive," he said.
