Major clothes retailers in fashion
International fashion chains have taken several prime pitches on Dublin’s top thoroughfares
The world’s biggest clothing group, Spain’s Inditex, is to open a Massimo Dutti store in the former HMV outlet on Dublin’s Grafton Street. photograph: alan betson
With the retail market finally showing signs of stability in sales and rents after years of steep declines due to the crash, the big story in the sector in 2013 was the arrival of major international fashion retailers taking prime pitches on Dublin’s top thoroughfares.
The group is to spend about €3 million fitting out the shop, which has about 1,254sq m (13,500sq ft) of retail space. To secure the tenant on a 10-year lease, the store owners had to drop the rent from €1.7 million to €865,000.
“Massimo Dutti is arguably the most significant and important letting on Grafton Street for years,” said one retail agent.
In June, the world’s second- largest fashion retailer, H&M, agreed to open a large store in the former National Irish Bank on College Green. It will be paying about €800,000 for 1,858sq m (20,000sq ft) of space, with the store expected to open in summer 2014.
The outlet will be two doors away from the flagship Abercrombie & Fitch store, which is trading strongly in another landmark building once occupied by Bank of Ireland.
Swedish-based H&M also agreed to open its first Irish outlet for the upmarket Cos fashion brand in the premises occupied by Tower Records on Wicklow Street. It is unlikely to pay less than €500,000 per annum for 743sq m (8,000sq ft) of retail space.
It was the same story across the Liffey. Just last month, Spanish fast-fashion chain Mango agreed a rent of about €700,000 for one of the best pitches on Henry Street, while TK Maxx agreed to in effect become an anchor tenant at the Ilac Centre with a store of 33,000sq ft.
To secure the tenant, the landlords agreed to a two-year rent-free period before a €550,000 rent kicks in.
Fall in rents
Zone A rents in the city centre, according to Colliers International head of retail Aiden McDonnell, are now €4,300 per sq m on Grafton Street, “down from market highs of €8,600 to €10,700 per sq m”.
On Henry Street, he says they are €3,400 per sq m, down from highs of about €7,500 per sq m. In suburban centres, Zone A rents in Dundrum are about €4,000 per sq m; €2,300 per sq m in Liffey Valley (“down from market highs of €3,200 to €4,000 per sq m”); and €2,450 per sq m in Blanchardstown (“down from highs of €3,200 to €3,800 per sq m”).
But McDonnell is cautious about these figures: “Many rental deals are confidential and predate recent legislation to register lease details, so it can be quite difficult to be precise as tenant incentives, etc, need to be allowed for.”