Rent cut for Dunnes Stores space in Dublin
Cost of George’s St retail space cut by 35 per cent
Dunnes Stores operates 10,500 sq ft of retail floor space in the 125-year-old listed building it also uses as a head office.
A Circuit Civil Court yesterday cut the rent paid by Dunnes Stores on the retail floor space of its George’s Street, Dublin, head office by 35 per cent.
In cutting the rent the retail chain pays to Layden Properties George’s Street Ltd, Judge Jacqueline Linnane said the rental for basement storage, offices and ancillary space would also be cut by 50 per cent.
Dunnes Stores operates 10,500sq ft of retail floor space in the 125-year-old listed building it also uses as a head office.
The judge said: “The economy is in recession, there is a high rate of unemployment and there has been a fall in retail sales and a decline in consumer spending.”
The review reduces the pre-existing rate for the retail area of €50 per square foot by 35 per cent to €32.50 per square foot.
Ancillary office and storage areas, amounting to 54 per cent of overall 23,000sq ft space, was cut by 50 per cent from €15 to €7.50 and from €10 to €5 respectively.
Hugh O’Neill SC, counsel for Dunnes Stores, and John O’Donnell SC, for the landlord, were granted leave to mention the matter in the next law term following consideration of the judgment.
Judge Linnane said that when reviewed previously by the court in 2006 the rent amounted to €693,000 a year. Experts for Dunnes had told the court that the rent should total €225,600 per annum as against an estimated total of €717,000 by experts for the landlord.
The judge said an outside-of-premises market survey on behalf of the landlord suggested that, on an estimated turnover and profit potential, Dunnes could afford a rent of between €696,000 and €1,228,640 per annum.
Judge Linnane said the survey, over a period earlier this year, had been based on the number of people entering and leaving the premises, with frontage and access from both George’s Street and Exchequer Street, and whether they left carrying a plastic bag or not.
Since the last review date there had been a decline in rental values as shown by new lettings and rent reviews determined by the court.
No figure of the overall new rent was given in court.