WestEnd in Blanchardstown
Retail parks adopt creative solutions to fill empty units
Published: 27 August, 2009
The opening of Ikea’s Dublin store has been warmly welcomed by Irish shoppers who have been flocking to the store in Ballymun in droves. At times the store has been so busy that the Swedish retailer has been forced to close its car park.
But it has proved less popular with rival furniture and homewares retailers, and with retail park operators in general. The out-of-town retail sector was already struggling because of the depressed housing market, even before it faced competition from one of the world’s most powerful retailers.
Before Ikea’s arrival the sector had seen a string of business failures, with names like Land of Leather and Classic Furniture disappearing from the Irish retail landscape. So what are the prospects for Ireland’s retail parks? Research published this summer by CB Richard Ellis shows that Ireland has a total stock of 1.3m sq m of retail park accommodation, with another 35,000 sq m under construction and due for completion before the end of this year.
Live projects include The Showgrounds development in Tipperary, anchored by Marks & Spencer, and phase II of the Gateway retail park in Galway. And although a large number of schemes are currently on ice, CBRE expects another 40,000 sq m of retail warehouse space to be delivered in 2010.
Agents point out that the picture is not universally gloomy, however. At the WestEnd shopping park in Blanchardstown, ranked as Ireland’s premier out-of-town park by Retail Excellence Ireland, the former Borders store has been taken by New Look. The fashion retailer is understood to have agreed €430 per sq m for the store, which extends to 1,450 sq m with a 465-sq m mezzanine.
“The park’s doing well,” says Bernardine Hogan at letting agent Savills. “We’re now looking at possibly introducing more fashion.”
Similarly at The Park, Carrickmines – another prime retail park – Hogan says only two units remain available and offers have been received for both of them.
But elsewhere lettings are thin on the ground and owners are having to show a degree of creativity when it comes to finding uses for vacant space. Increasingly they are turning to leisure operators to diversify their occupier base.
For example, Showtime Cinemas recently opened on a retail park in Ashbourne, Co Meath, taking a 25,000-sq ft unit and fitting it out as a six-screen multiplex. The operator has plans for another five such conversions as it attempts to become as force in the Irish market.
“The developer’s delighted,” says Paul McCoy at CBRE. “The cinema brings people to the park in the evening and it opens up the possibility of bringing in some complementary users like Eddie Rocket’s or Burger King.”
Similarly at the Dundalk retail park in Dundalk, Co Louth, JJB installed one of its soccerdome health clubs. Now taken private by the brand’s founder Dave Whelan, it trades as DW Sports Fitness.
Fun Barn, which operates childrens’ play facilities, is another leisure operator looking to expand on retail parks, and other landlords are investigating installing roller- and ice-skating rinks.
“This is a trend we see continuing,” says McCoy, although he cautions that planning can be a barrier. However he notes: “Planners seem to be more willing to consider change of use.”
