In Short

A roundup of today's other commercial property news

Big names for SCS conference

The annual conference of the Society of Chartered Surveyors will feature many high profile speakers, including the Minister for Finance Brian Lenihan, Alan Barrett from the ESRI, and there will be a debate on Nama between Alan Dukes and UCD economist Professor Brian Lucey. Other topics for discussion include the construction industry, property financing conditions in the Irish market, valuation methods and how Nama will impact on surveyors and the industry over the next few years. The conference, “Staying afloat in uncertain times”, will be hosted by SCS president Ken Cribbin and chaired by RTÉ’s John Bowman. It takes place on Friday, October 16th at the O’Reilly Hall in UCD.

Health food store expands

Health food company Holland & Barrett has just opened its first store in Wexford at 83 North Main Street. The store extends to 150sq m (1,615sq ft) and is being occupied under a 15-year lease. Rents in the area are typically between €430 and €646 a sq m (€40–€60 a sq ft) and, interestingly, part of Holland & Barrett’s rent (less than 10 per cent) is based on turnover. The retailer is planning to open more stores around the country, typically in provincial towns with a population over 20,000 and in prime urban shopping centres. Keith Ruane of Colliers Jackson-Stops acted for Holland & Barrett while Sherry FitzGerald Hawthornthwaite acted for the landlord.

Eight lettings at D15 centre

Eight light industrial units at the Orion Business Centre, Ballycoolin, Dublin 15 have been let over the last six months. Letting agent Jones Lang LaSalle says activity dramatically increased when the quoting rent was reduced to €75.35 a sq m (€7 per sq ft). The majority of new tenants, it says, are new businesses which had been waiting for rents to come down to a more affordable level. The units range from 166 to 335sq m (1,787 to 3,606sq ft).

Deals at D15 business park

Two significant lettings have been concluded at Northwest Business Park in Ballycoolin, Dublin 15, leaving just one remaining speculative unit available at the development.

The first deal was the letting of Unit 507B – a new mid-terrace hi-bay industrial facility of 885sq m (9,526sq ft), including 237sq m (2,551sq ft) of offices – which has been let to Crown Relocations. The deal is on the basis of a 15-year lease at stepped rents over the first five years rising to around €96 per sq m (€9 per sq ft). Peter Flanagan of BNP Paribas acted for the tenant.

The second letting was to Devine Logistics which is to take 1,395sq m (15,016sq ft) of space, including 281sq m (3,025sq ft) of two-storey offices. The 10-year lease is at the same stepped rent over the first five years rising to around €96 per sq m (€9 per sq ft). Gavin Butler of letting agent Savills says: “These deals are evidence of the willingness amongst developers to do deals.”

New arrivals at Liffey Valley

Leading Danish fashion group Bestseller is bringing two of its well-known brands, Jack and Jones and Only, to the Liffey Valley shopping centre. Other recent arrivals at the centre include Irish multi-brand fashion retailer Mego and the first dedicated Inglot cosmetics store in Ireland while gents formal wear retailer Addiction is to start its fit-out at the centre shortly. Jack and Jones has taken a 20-year lease on a store of 221sq m (2,379sq ft), as has Only on its 199sq (2,142sq ft) unit and Mego on its 200sq m (2,153sq ft) store. Inglot has taken a five-year lease on its 71sq m (764sq ft) shop.

Liffey Valley also continues to extend its retail offer through its mall kiosks. The latest addition is the Jewellery and Watch Boutique. Stephen McCarthy of letting agent Savills says the centre is trading very well and they had “no trouble” in finding new tenants. “Liffey Valley retains its commercial appeal from a retailer’s perspective with the centre trading at full tenant capacity,” he says.

Liffey Valley has some 46,449sq m (500,000sq ft) of space with over 90 retailers. Marks Spencer, Dunnes Stores and Boots have flagship stores in the centre.

Owners Aviva Investors, Grosvenor and O’Callaghan Properties recently lodged a planning application for an additional 61,998sq m (667,340sq ft) of mixed-use space at the centre, which will provide for a food store, two department stores and 60 retail units.

Take-up to reach 85,000sq m

Lisney’s latest office update says take-up in the Dublin market should reach 85,000sq m (914,931sq ft) this year. Significant deals in Q3 included the acquisition by the Aviation Authority of 3,541sq m (38,115sq ft) at the formerIrish Times offices on D’Olier Street; 1,843sq m (19,838sq ft) by Three on South King Street; and 1,672sq m (18,000sq ft) by OSG in Merrion Hall. The agency says that 25 per cent of available space in the city is functionally obsolete. “Under normal circumstances such property would be redeveloped but, in the current climate, this is not an option. Developers holding such property are offering the buildings at seriously discounted rents far below the economic cost of replacing the properties which would indicate an over correction with the current pricing structure.”