Rents at top Dublin centres pass £100 mark

PREMIUM retail space in three of Dublin's most prestigious shopping centres is commanding rents of £100 per square foot or more, according to a study carried out by Sherry FitzGerald. The study also reveals that premium space in suburban centres such as Lucan and Bray is fetching £23-£28 and £27-£32 per square foot respectively.

Mr Gordon Gill of Sherry FitzGerald, who compiled the study, says zone A rents in the ILAC Centre, the new Jervis Street Shopping Centre and the St Stephen's Green centre are making £100 or more.

Valuers divide the floor area of shops into zones, each with a different level of value. Zone A rents comprise the front area up to a depth of 20 feet from the shop entrance, as the front area of shops are regarded as the most valuable space in the unit. The centre and rear of premises are less valuable.

MrGill says, not surprisingly, the highest value centres are the largest and busiest ones. Jervis Street shop in centre, although not yet open, joins at the top end of the band, although the figure may be somewhat biased by the fact that it enjoys designated status like The Square," he says.

Zone A rents in The Square in Tallaght are commanding £79-£100 per square foot. Other main shopping centres in Dublin, including Blackrock, Blanchardstown, Donaghmede, Omni Park and Stillorgan, are fetching £50-£70 per square foot. Centres such as Crumlin, Dundrum, Dun Laoghaire, Frascati and Rathfarnham are making less than £50 per square foot.

Mr Gill says the range of rents in the suburbs is fairly tight and only really soars in the city centre streets. The survey also shows that shopping centre rents are mainly higher, which reflects the concentrated passing trade and higher level of amenity demanded by consumers.

Premium, front-of-shop retail space in Henry Street is making £140-£150 per square foot, but Grafton Street is commanding slightly more - £165-£175 per square foot, according to the study. Mr Gill's analysis found that in Baggot Street and Dawson Street zone A space ranged from £40-£45 and £45-£50 respectively.

He cautions that the figures are indicative and will vary according to the position of a shop in each location.

Zone A rents in good retail locations in Dundrum, Tallaght, Drumcondra, Ranelagh and Donnybrook average at around £28-£33 per square foot. Rents in Rathmines Swords Dun Laoghaire and Terenure are also broadly similar, running at around £33-£38 per square foot.

Mr Gill says zoning retail properties allows for more uniformity in value between shop units in a retail high street or shopping centre, which often have different layouts or sizes. It is a more sophisticated approach for analysis and valuation than adopting the total rate per square foot, although this figure can be of relevance and a broad check on values," he says.

As the first 20 feet of retail space are normally the most valuable, the next 20 feet are valued at half of zone A, and the following 20 feet are valued at a quarter of zone A.

However, Mr Gill adds that as there are an infinite number of variables in the location and lay out of a shop, no method of analysis can be rigorously applied, and each case must be assessed on its own merits by an experienced valuer.