Retail boom in outskirts prompted by lower rents

The outskirts of Waterford city have been experiencing a retail boom over the past year, with a plethora of new outlets opening in warehouse retail parks and shopping centres.

There has been a definite move away from the city centre where demand for units far outstrips supply in shopping centres like City Square and Georges Court and in the main shopping streets. Zone A rents are also more expensive, ranging from £80-£100 per sq ft, compared to £220-£240 per sq ft in Dublin, and from about £50-£70 per sq ft for a shopping centre unit.

One of the biggest recent retail developments is the construction of the new 54,000 sq ft Superquinn on the inner ring road between the Cork and Tramore roads which will employ 250 people and incorporate about seven retail units, which will take up an additional 6,000 sq ft. There will also be 5,000 sq ft of office space.

The supermarket is due to be finished in mid-October, and according to Donal Palmer, there are fears that it may have a devastating effect on the existing supermarkets in the area. Rents for the smaller retail units will be about £35 per sq ft.

One area in the suburbs which is ripe for further development is Ardkeen, situated near the Dunmore Road, the main residential area in the city where about 30 per cent of the city's population live. The Ardkeen Shopping Centre is in the final stages of a three-year £5 million revamp and expansion.

According to the developers, Ardkeen Shopping Centre Ltd, there are only "a few nooks and crannies vacant" in the 40,000 sq ft shopping centre. Rents range from £12 per sq ft. There is also a plan in the pipeline for another shopping centre in the area, which is being developed by Frisby Construction.

The Cork and Tramore roads have seen the construction of a number of retail warehouse parks in the past year. These parks have proved popular as, in contrast to many city centre areas, they provide ample much needed parking facilities.

There are also several business parks springing up in the Cork road area, including the 21-acre Waterford Business Park. The business park contains 39 incubator units, 27 of which have been taken up. Rents are pitched at £4.50 to £5.50 per sq ft.

The CQ business park at Six Cross Roads, three miles from the city centre, has sold a number of its six 2,000 sq ft units for £135,000, plus VAT. Rents are pitched at £5 per sq ft. They plan to sell a further eight individual units of 2,000 sq ft each, now being built, through Rohan Auctioneers.

Industrial land in Waterford ranges from £100,000 to £150,000 in a low profile area to £300,000 to £500,000 for prime locations. The IDA has just lodged a five-year plan for a 50-acre business and technology park on the Cork road. Colm Donnellan of the IDA says the Authority also plans to promote its 100-acre site beside Belview port as a large-scale industrial site but is currently waiting for infrastructure to be put in place.

"The business park on the Cork Road and the Belview site are now the focal points for the next generation of development," said Mr Donnellan.