Retail leases are longer than in European countries

Retail leases in Ireland, at 20 to 25 years, are now the longest in Europe, according to a survey conducted by Jones Lang LaSalle. It shows that retail leases in most European countries are now between five and 15 years. The UK used to have a similar pattern to Ireland with 25-year leases but it is now increasingly common to have 10-year leases. "The strength of demand in the Irish market is one of the factors that underpins the length of leases," says Stephen Murray, retail agency director of Jones Lang LaSalle in Dublin. "Another factor is that landlords and tenants cannot contract out of landlord and tenant rights in relation to retail premises, as they can in relation to offices. While landlords are unwilling in most cases to grant less than 20-year terms, it is reasonable to assume that we will follow the trend in the UK and in the office market and that we will see some drop in the length of retail leases over the next five years," he says. The survey also provides details of other aspects of retail leases and shows that key money is common throughout Europe, especially in relation to property in prime locations where it is often substantial.