INVESTING IN DUBLIN 2020 - BNP PARIBAS REAL ESTATE GUIDE TO - Real Estate for a changing - BNP Paribas Real Estate Ireland
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BNP PARIBAS REAL ESTATE GUIDE TO
INVESTING
IN DUBLIN
2020
in collaboration with:
Real Estate
for a changing
worldKEY FIGURES CONTENTS
2019 2019 RESULTS
BNP Paribas Real Estate €1.010
€203M of net profit before tax
BN
OF REVENUES
€898.5M in equity capital
INTRODUCTION
4 FOREWORD BY KENNETH ROUSE
GUIDE TO DUBLIN
24 DUBLIN’S OFFICE MARKET
6 IRELAND AND DUBLIN BY NUMBERS 31 DUBLIN’S RETAIL MARKET
39 LAND & DEVELOPMENT
BREAKDOWN OF REVENUES 43
47
PROPERTY MANAGEMENT
WORKPLACE SOLUTIONS AND STRATEGIC
8% 19% OVERVIEW DESIGN CONSULTANCY
OTHERS COMMERCIAL 49 LEASE ADVISORY
PROPERTY
DEVELOPMENT 55 CAPITAL ADVISORY
AND RESIDENTIAL
17% 81% 10 10 KEY REASONS TO INVEST IN IRELAND
UK 50% PROPERTY 16 IDA IRELAND: DUBLIN REMAINS THE
FRANCE SERVICES
(Transaction, LOCATION OF CHOICE FOR FOREIGN
INVESTOR TOOLKIT
37%
Advisory,
REVENUES REVENUES Valuation, DIRECT INVESTMENT
BY COUNTRY BY BUSINESS LINE Property
Management 19 IRELAND’S INVESTMENT MARKET
and Investment
OF RECURRENT REVENUES : Management)
25% Consulting, Valuation, Property Management,
59 IRISH REAL ESTATE FINANCE
GERMANY Investment Management
and Serviced Accommodation 62 IRISH REAL ESTATE LAW
71 TAX CLINIC
A COMPLETE OFFER FOR INNOVATIVE SOLUTIONS
COMMERCIAL PROPERTY DEVELOPMENT RESIDENTIAL PROPERTY DEVELOPMENT
OUR TEAM
116,600 sq.m started €727M of sales volumes
245,000 sq.m of schemes under construction 2,500 housing units started in France
in Europe 79 CONTACTS
ADVISORY (TRANSACTION, CONSULTING, VALUATION) INVESTMENT MANAGEMENT
€553.3M of revenues, with 5.9M sq.m of commercial €30.1Bn of assets under management in Europe
real estate provided to users
+4.8% vs 2018 BNP Paribas Real Estate Ireland
€31Bn in commercial real estate investment transacted
20 Merrion Road, Ballsbridge, Dublin 4, D04 C9E2, Ireland
www.realestate.bnpparibas.ie
Investing in Dublin 2020 was edited by BNP Paribas Real Estate Ireland
in collaboration with:
PROPERTY MANAGEMENT 16%
OTHERS 38%
€110.4M of revenues FRANCE
43.7M sq.m of managed portfolio
(60% outside France).
18%
GERMANY WORKFORCE All rights reserved. This Guide is protected in its entirety by copyright. No part of this publication may be reproduced,
BY COUNTRY translated, transmitted, or stored in a retrieval system in any form or by any means, without the prior permission in
28% writing of BNP Paribas Real Estate Ireland.
UK4 | INVESTING IN DUBLIN – 2020 INTRODUCTION | 5
Irish commercial real estate continued
FOREWORD to deliver exceptional returns throughout
2019, against a backdrop of strong political,
social and economic fundamentals.
Kenneth Rouse
Managing Director
Head of Capital Markets
BNP Paribas Real Estate Ireland Growing interest from global investors is ev- The global impact of the COVID-19 pandemic cluding conversion and repurposing to create
idenced in the evolution of the mega-deal is also now being experienced in Ireland and sustainable real estate. BNP Paribas Real Estate
(€100m+) in the past five years, with 18 such is affecting all business sectors including real can provide the solutions to this potential real
transactions completed in 2019 displaying a estate. Nevertheless, the fundamentals of com- estate ticking time bomb.
Ireland’s robust performance continues to ce- steady increase year-on-year when compared mercial property markets are slower moving
ment the country’s position as an excellent with the 4 mega-deals transacted in 2014. than those of bond and stock markets. Prop- There are many reasons to invest in Ireland, not
place in which to invest and do business. This erty investors, as we know, are generally in ‘for least the high calibre investment advice, man-
annual publication from BNP Paribas Real Es- This trend is set to continue as real estate allo- the long haul’, and appreciate the durability of agement and advisory services provided by the
tate Ireland looks at the market fundamentals, cations grow, crucially providing investors with hard assets. dedicated BNP Paribas Real Estate Ireland team
with a particular focus on Dublin commercial consistent income and real value, particularly in Dublin.
property, and asks what is in store for 2020 and in a sustained low interest rate environment. The institutional shift in focus towards ESG
indeed the decade ahead. Spreads between real estate yields and invest- (Environmental, Social and Governance) has In this report, we provide in-depth analysis of
ment grade corporate bonds have never been seen sustainability and green lending also be- the different market sectors and compelling
We entered the ‘roaring 20s’ with a confident greater. come hot topics. At the World Economic Forum investment rationale, as well as a complete
outlook, with total investment turnover of held in January 2020, climate change was top investor toolkit of essential local knowledge.
€7.3bn recorded in 2019 and the market dis- Still, there are some challenges on the hori- of the agenda, with the top 5 global risks all Our sincere gratitude goes also to EY, Eugene F.
playing few signs of weakness. As Europe’s zon for real estate, including issues related identified as ‘green’. Collins Solicitors, AIB and IDA Ireland for their
fastest growing economy for six consecutive to housing, climate change and sustainabil- various expert contributions to this edition of
years, the Irish commercial property market is ity as well as the outcome of Brexit negoti- When it comes to climate change, real estate the Investing in Dublin guide.
increasingly on the radar of international in- ations and how that may impact on the Irish is viewed as a major offender, with the indus-
vestors. A low-risk option with healthy occupier market. Progress however is being made on try challenged to place a greater emphasis We hope it provides some useful insight to the
demand and favourable demographics, our safe national issues, including housing provision, on greener, more sustainable, carbon neutral Irish real estate market, and we look forward
and stable society, common law legal system and climate change too is a concern that Irish buildings, in order to satisfy demand from so- to bringing our vast domestic and international
and straightforward tax regime add to market Government, society and enterprise are ad- ciety, regulators and investors. Obvious issues commercial property expertise to your real es-
appeal. dressing. arise around dealing with existing stock; in- tate needs going forward.6 | INVESTING IN DUBLIN – 2020 INTRODUCTION |
7
IRELAND
AND DUBLIN #1 IN THE WORLD #1 IN THE WORLD
BY NUMBERS for inward investment
by quality and value1
for attracting and
retaining talent1
#6 IN THE WORLD
in terms of economic
#1 IN THE WORLD
for investment
freedom2 incentives1
In the TOP 15
most innovative
countries
in the world3
7th IN THE WORLD
most competitive
economy1
1 IMD World Competitiveness Yearbook 2019
2 Economic Freedom Index 2019
3 Global Innovation Index 2019
The TOP 5 global 14 of the top 15 medical ALL of the top 8 of the top 10 industrial 18 of the top 25 financial
IRELAND software companies technology companies pharma companies automation companies services companies
IS HOME TO:8 | INVESTING IN DUBLIN – 2020 INTRODUCTION | 9
COMMERCIAL PROPERTY
#1
for Brexit relocation
#3
in European Cities
4.93m Population of Ireland
€7.3bn investment turnover4
in Ireland in 2019
decisions among financial
and Regions of the Future6
services firms5
43% office
36% residential
Youngest population
in Europe: 9% retail
#5
in top 10 global FinTech
33%
of population under
25 years of age
Dublin represented 88% of total
turnover
Locations of the Future7
DUBLIN OFFICE MARKET
1.9m inhabitants
in the Greater Dublin Area 309,847m2 take-up in 2019
DUBLIN 40% of total
population of Ireland 53% TMT
#8
in the world for career
Public transport
18% public sector
220,000m2 delivered in 2019
opportunities8
trips in Dublin
reached
243 million
in 2019 (+8.7%)
1 IMD World Competitiveness Yearbook 2019
IRELAND AND DUBLIN 2 Economic Freedom Index 2019
3 Global Innovation Index 2019
4 Includes residential investments (e.g. PRS)
5 EY Financial Services Brexit Tracker 2019
BY NUMBERS
6 Financial Times fDi European Cities and
Regions of the Future 2020/21
7 Financial Times fDi FinTech Locations
of the Future 2019/2020
8 EY-DKM Dublin Economic Monitor 202010 | INVESTING IN DUBLIN – 2020 OVERVIEW | 11
10 KEY REASONS Europe. The climate is temperate and is gen-
erally spared from natural disaster and Ireland
consistently ranks highly on the Global Peace
Index making it one of the world’s safest coun-
half of 2019 with banks now being charged a
premium to deposit liquid assets with the Eu-
ropean Central Bank. The consensus is that
this period of low interest rates is likely to last
TO INVEST tries in which to live. This marks Dublin out as
the optimal place for investors seeking to min-
imise uncertainties from external global and
into 2020 and beyond, supported by monetary
policy, moderate economic growth, low infla-
tion, ongoing risk aversion and the continued
IN IRELAND
geopolitical risks. abundance of global liquidity. In light of this,
a natural gravitation towards investment in
4 A SUSTAINABLE INVESTMENT
MARKET
real estate is likely to continue thanks to the
secure income stream and higher return on
investment on offer. Ireland is well positioned
Ireland has demonstrated a remarkable real to benefit from the abundance of capital which
estate recovery with investment in commer- overseas investors are seeking to deploy in real
cial real estate reaching a record €7.3 billion in estate in this low interest rate environment.
2019. This represents an increase of 97% rela-
tive to 2018. The Dublin market has a good de-
gree of liquidity with foreign equity investing in
5 DIVERSE AND HEALTHY LEVEL
1 EUROPE’S FASTEST GROWING
ECONOMY
2 FAVOURABLE DEMOGRAPHICS
tandem with domestic investors. There is also
a significant spread between prime real estate
OF OCCUPIER DEMAND
As the urbanisation of Irish society continues,
Ireland has the youngest population in Europe yields and long-term investment grade bonds the Dublin office market is experiencing a long-
The Irish economy has recorded several years with a third of the population under 25 years’ demonstrating a high degree of relative value term trend in the expansion of global Tech-
of strong, sustainable growth with 2019 the old making Ireland’s dependency ratio very fa- in the Irish market. nology Media and Telecommunications (TMT)
sixth consecutive year in which Ireland has vourable. Ireland’s population is forecast to rise companies, such as Amazon, Facebook, LinkedIn
emerged as the fastest growing economy in the by one million people by 2040 with the pace of Historically low interest rate policies have gone and Salesforce, who have all progressed plans
Eurozone. Irish GDP rose by 8.2% in 2018 and growth expected to be stronger in Dublin and hand in hand with economic weakness and low to create major office campuses for their EMEA
by a further 5.5% in 2019, supported by rising the surrounding areas, where almost 40% of inflation across Europe. The 10-year German headquarters in Dublin in recent years. These
employment and wages, moderate inflation and the population live and work. Ireland’s young bond yield was negative throughout the latter have become the driving force of Dublin’s oc-
rising investment from both the government workforce is very adaptable and highly edu-
and from foreign investors. GDP is expected to cated with Ireland’s education system ranked
be negatively impacted by the COVID-19 pan- amongst the top 10 in the world. Ireland also
demic however this will be on a global scale. holds the second highest rate of tertiary educa-
The full impact of this remains to be seen. tion attainment in the EU.
Ireland is now one of the only English-speaking
countries in the Eurozone and has been ranked
3 DOMESTIC STABILITY
first in the world for attracting and retaining Ireland offers a high degree of economic and
talent. Dublin has experienced a significant political stability with the benefit of a common
influx of major technology, pharmaceutical and law legal system and favourable tax structure
financial companies over recent years. This which is relatively straight forward to under-
supports a robust office occupier market which stand. Ireland is strongly aligned with the Eu-
in turn enhances Ireland’s attractiveness from ropean Union and benefits from the common
an investment perspective. trade area and access to talent from across12 | INVESTING IN DUBLIN – 2020 OVERVIEW | 13
cupational market and backbone of commerce assist those affected and encourage employers Dublin in particular. This in turn has provided
and innovation. to retain their staff where possible. It is hoped
that this will lead to a more rapid recovery once
opportunities for investors in the form of in-
vestment and forward funding opportunies in
10 AN INCREASING ACCESS TO DEBT
The Dublin office market is very varied in its the virus has come under control. the build-to-rent (BTR) and purpose-built stu- With the improving sentiment in the invest-
occupier makeup, unlike other European capi- dent accommodation (PBSA) sectors. The resi- ment market the availability of debt has contin-
tal cities which tend to be dominated by finan-
cial and professional services. Office take-up in
7 INCREASING FOCUS ON ESG
dential sector accounted for 36% of total turn-
over in 2019 with Irish and overseas investors
ued to grow. We are in a relatively low interest
rate cycle coupled with tight lending margins
Dublin reached close to 310,000 sq.m in 2019 The Irish real estate sector is experiencing an alike now recognising the appeal of the stable, as banks look to grow their loan books on a se-
marking the third strongest year on record, increasing focus and demand for sustainability, long-term returns on offer from this growing lective basis after years of deleveraging. This
with TMT companies accounting for more than supported by the introduction of Near Zero market sector. has translated into borrowers being able to se-
half of this space. Large financial organisations Energy Building (NZEB) regulations. More than cure attractive financing terms on core Dublin
are located all around Dublin, while State enti- 500,000 sq.m of new or refurbished Grade A The continuing emergence of technology as a assets. With city centre properties generally
ties also expanded rapidly in 2019 accounting office space has been delivered in Dublin during solution to overcome challenges in the real es- having a stable and diversified income profile
for 18% of take-up. the past three years, with speculative office tate industry is disrupting traditional methods there is an increasing number of both local and
development now well underway in regional and shaping the Irish and global real estate foreign financial institutions who are offering
In Ireland commercial office leases are gener- locations too. With the advent of global building sectors. Irish developers are increasingly imple- competitive debt terms.
ally longer than in most continental markets standards such as LEED, BREEAM and WELL menting ‘smart’ technology which in turn im-
(typically 25 years with a break after 10-12 certification, these offices are being designed pacts on the attractiveness and efficiency of new
years) and lease terms are generally more fa- and built at a quality and specification that can properties and ultimately on investment values.
vourable to the investor than the equivalent in be understood and valued by global occupiers
other countries. Other things being equal, in-
vesting in Dublin can provide a further element
and investors alike.
9 FOREIGN DIRECT INVESTMENT
of medium-term income stability. Environmental, Social and Governance (ESG) Ireland is ranked No. 1 in the world in terms
factors have become a key determinant in in- of the total value of Foreign Direct Investment
6 STRONG CONSUMER ECONOMY
vestment decisions thanks to a growing empha-
sis on and understanding of the negative impact
projects, while Dublin has separately been
ranked No. 3 overall in the fDi Intelligence Eu-
Steady gains in employment levels, incomes of climate change. Investors want to ensure that ropean Cities of the Future ranking and No. 1
and expenditure across Ireland are having a these factors have been taken into account and for Brexit relocation decisions among financial
knock-on effect on the Irish consumer economy, will be mitigated throughout the life-cycle of services firms.
which, despite considerable global uncertainty their properties. There has been increased focus
and fluctuating consumer sentiment, has been on ‘impact investing’, which involves the imple- Ireland generates substantial inward invest-
performing considerably well in recent years. mentation of benchmarking strategies such as ment year upon year with strengths in key
the Global Real Estate Sustainability Benchmark high-value sectors such as ICT, financial and
The latest figures from the Central Statistics (GRESB) or the creation of bespoke investment business services and life sciences. Ireland has
Office (CSO) show employment levels to have criteria to ensure that investment portfolios become the global technology hub of choice
increased by 3.5% during 2019 with a record meet certain ESG standards. This is set to con- when it comes to attracting the strategic busi-
2.36 million people in employment, while aver- tinue to grow during 2020 and beyond. ness activities of TMT companies and Dublin
age earnings have also increased by 3.5%. This has earned the reputation for being the heart
led to growth in gross disposable incomes of
4.8%. While the economy has been badly im-
8 MARKET DISRUPTERS AND THE
ALTERNATIVE
of TMT in Europe.
Damien McCaffrey
pacted by the global COVID-19 pandemic, with
store closures leading to widespread job loss- A lack of supply has led a surge in residential Director, Investment
es, the government has made great efforts to development activity across Ireland and in BNP Paribas Real Estate Ireland14 | INVESTING IN DUBLIN – 2020 INTRODUCTION | 15
CUTTING-EDGE
GLOBAL COMPANIES
With a presence in Ireland16 | INVESTING IN DUBLIN – 2020 OVERVIEW | 17
IDA IRELAND: competitive global environment. Dublin has long
since been a location of choice for many multi-
nationals looking to invest and reinvest in Ire-
land to service the European marketplace.
stakeholders, both public and private, in respect
of education, infrastructure, utilities, enterprise
supports and placemaking. Consequently Dublin
and its world class business ecosystem often
DUBLIN REMAINS 2019 saw that portfolio further enhanced with
significant investments from the likes of Linke-
attract the focus and inquisitive glare of com-
petitor jurisdictions and their representatives. In
order for the rest of the country to thrive, we
THE LOCATION OF CHOICE FOR dIn, Indeed, Salesforce, LogMeIn, and Facebook
to name a few. Dublin’s credibility and value
proposition for FDI is particularly impressive
when you consider the diverse range of projects
must continue to invest in making Dublin a great
place to live and work. Other global cities are
already doing this and ‘placemaking’ is becom-
ing a real area of competitive advantage in cities
FOREIGN DIRECT INVESTMENT it wins for ‘Ireland Inc.’ from a wide range of
sectors and activities such as Digital Media, Life
Sciences, International Financial Services and
Information & Communications Technology (ICT),
across the world. We must also ensure that there
is solid vision for Dublin so that it can continue
to act as a magnet for investment.
amongst others. We must not be complacent however when it
comes to sustaining our competitive position and
Dublin’s track record, particularly in respect of in enhancing our value proposition for the ever
supporting many leading technology companies’ complex and evolving needs of FDI. Dublin must
Dublin continued to absorb a significant EMEA operations (e.g. Google, Facebook and continue to lead the way in supporting the next
amount of Foreign Direct Investment (FDI) LinkedIn) and attracting the next wave of glob- wave of investments in commercial and residen-
in 2019. It is the country’s leading city al technology companies such as HubSpot and tial property solutions that meet the needs of
of international scale and remains Airbnb, has seen parts of the city rebranded as mobile investments and their employees.
an attractive place for investors to locate. the ‘Silicon Docks’. This is an illustration of the
hive of activity and vibrancy that these compa- Investments from the likes of Ronan Group Real
nies have brought to a small part of the city and Estate (RGRE), Kennedy Wilson, IPUT, Marlet,
is regularly referenced in many corporate board Ballymore, NAMA and the various REITs active
rooms all over the world. in the Irish market, amongst many others are
The FDI performance over the past five years Dublin shows a remarkable capacity to attract It should be noted that the success of Dublin over crucial for future proofing Dublin’s capacity and
has been unprecedented. Employment levels in foreign direct investment and has developed an many years is a result of sustained investment competitiveness in sustaining and growing the
IDA Ireland’s client companies has now reached international reputation as a hub for Financial and a ‘can do’ attitude and partnership by all
245,096 which is the highest ever number em- Services and FinTech, Technology and Interna-
ployed in the multinational sector, exceeding tional Operations centres, amongst others. Com-
targets set by the government contained in IDA panies who choose to locate parts of their busi-
Ireland’s Strategy, Winning: Foreign Direct In- ness in Dublin include its rich and diverse talent
vestment 2015-2019. pool and the attractive business environment as
key factors in their investment decisions.
End of year results published in January show
another strong performance in 2019, which The success of Dublin in 2019 in attracting mo-
saw 250 investments made with 21,844 jobs bile foreign direct investment is nothing new in
created in FDI companies in the final year of that the capital has regularly represented Ire-
IDA Ireland’s current strategy. The net gain was land’s strongest card when it comes to compet-
13,867 additional jobs. ing for ‘hard won’ mobile investments in a highly18 | INVESTING IN DUBLIN – 2020 OVERVIEW | 19
existing base of FDI whilst remaining relevant
and competitive in relation to winning new name
investment flows as they present themselves.
The city and its accessible suburbs are set to
We were fortunate to have entered 2020 on the
back of strong growth. Our value proposition
continues to be strong, we are well positioned
as a gateway location to Europe and are com-
IRELAND’S INVESTMENT
undergo something of a transformation over the
next number of years with the scale of planned
development. It is our collective responsibility
to ensure placemaking, sustainability and urban
mitted members of the EU. We are business
friendly and supportive. Talent continues to be
an important asset. Being competitive is more
important than ever for our client companies
MARKET OVERVIEW 2019
excellence are at the core of every urban devel- to continue to grow and develop and as Ireland
opment. The successful adoption of the govern- expands its footprint across the globe, seeking
ment’s Urban Development and Building Height out new markets from which to win investment.
Guidelines enabling compact growth through Several years of strong, sustainable growth, rising
height and density in the most appropriate loca- employment and wages, and moderate inflation
tions is a positive first step in delivering this am- underpin Ireland’s healthy economy. Against this
bition. The sense of opportunity is everywhere
backdrop, the past year has been characterised
at present in relation to the property market.
by record levels of investment in Irish real estate.
Finally, talent remains the biggest driver for IDA
client companies in their international invest-
ment location decisions. We must be conscious
that attracting the right talent is not only a
Damien Kilgannon
function of the job opportunity itself, but very Total investment in Irish commercial real The number of mega-deals (€100m+) contin-
much a function of the attractiveness of the Head of Property estate (including residential investments) ues to increase demonstrating high liquidity
IDA Ireland
location in which the job opportunity presents. reached a record €7.3 billion in 2019. This total in the market with 18 such deals completed
In this regard it is important to note that the represents an increase of 97% or near-doubling during the year accounting for 64% of turnover.
availability of quality and affordable residential of turnover relative to the previous year and This has been driven by strong competition for
accommodation is a key competitiveness factor marks the sixth consecutive year in which total prime office and PRS assets in particular, from
for FDI. turnover exceeded the ten-year average. Irish and international investors from an in-
creasingly varied spread of countries.
Our strategy for the period 2020-2024 will be Total annual investment turnover (€M)
informed by the backdrop of the COVID-19 pan- €8,000 Dublin remains the most popular lo-
demic and the as yet-to-be fully determined €7,000
cation for investment, accounting for
impact it will have on the Irish and global €3.2 billion or 88% of total turnover.
€6,000
economies and businesses. We had already ob- While there has been less investment
served significant downside risk in the market- €5,000 in regional locations, it is worth not-
place over the next five-year period with those €4,000 ing that this is a factor of a lack of
risks emanating from the possibility of an eco- €3,000
prime opportunities coming to mar-
nomic correction in key source markets, contin- ket as opposed to a lack of interest
€2,000
ued trade tensions, subdued global economic among investors. We are now seeing
growth and from domestic challenges related €1,000 a rise in speculative investment in
to competitiveness and the carrying capacity of €- Cork, Galway, Limerick and Waterford
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
the economy. which, along with further progress
Source: BNP Paribas Real Estate Research on the government’s Ireland 2040 re-20 | INVESTING IN DUBLIN – 2020 OVERVIEW | 21
gional development plans, will provide further DWS, Patrizia and Deka Immobilien were par- We are seeing a notable shift towards the devel- vestment activity. It is unlikely that Q1 turn-
opportunities for investors in the coming years. ticularly active in the Irish market in 2019, ac- opment of more mixed-use assets such as Cen- over will be impacted to a large extent, as a
counting for more than €1.1 billion or 15% of tral Plaza and the Clerys Quarter that comprise number of large transactions were carried over
total turnover. This is a significant retail, office, leisure and residential elements. from last year which have already completed.
3%
increase of 163% relative to 2018 This diversification of asset types puts an em- However, Q2 should see a notable slowdown in
4% Turnover by Sector
5% (% value of turnover) when investment from Germany phasis on ‘place-making’, which is attractive to activity, due to the impact of uncertainty which
reached €428 million. investors as it allows schemes to be active at all will suspend investment decisions.
9% Office times, rather than just during the day or night.
43% Residential
Core CBD office assets maintain It is hoped that, provided the current strict
Retail
their allure, seen as defensive The strong growth in investment into Irish real measures are adhered to and the number of
Mixed Portfolio
36% investments with domestic and estate is in stark contrast with the situation cases levels off in the coming weeks, the mar-
Industrial & Logistics
overseas investors alike compet- being experienced in the UK where commercial ket will begin to recover towards the end of Q2,
Mixed-Use
ing for best-in-class stock. This is property investment volumes declined by an leading to a surge in pent up activity by Q3.
Other
evidenced by recent portfolio sales estimated 18% annually. Ireland represents a
as well as the high values achieved compelling alternative to the UK for overseas Externally, Brexit also continues to pose a
for prime assets such as Five Han- investors who are attracted by the underlying threat to the Irish economy which may impact
over Quay and The Reflector. As a strength of the Irish economy and comforted by on the investment market. The formal exit took
18 result, despite a shift towards res- the fact that Ireland’s legal system is similar place on January 31st 2020 and we have now
41 Investment Transacions idential investment during 2019, to those in the US and the UK which facilitates entered the transition period in which the UK
14
4% by Lot Size
4%
(No. of Transactions, the office sector again emerged as investment. and the EU negotiate withdrawal terms. The
% value of turnover) the top performer accounting for transition period will last until December 31st
14% 1%
33 €100m+ 43% of total turnover. 2020, but may be extended by up to two years.
% OF TOTAL
€50-100m
OUTLOOK 2020 With no clear consensus on the exact with-
TURNOVER
13% €20-50m
47
64% The residential sector continued Irish commercial real estate continued to deliv- drawal agreement as yet, the effects of Brexit
€10-20m
€3-10m
to attract strong interest in 2019 er exceptional returns throughout 2019, against on the Irish market remain to be seen. Never-
23
€1-3m with €2.7 billion invested repre- a backdrop of strong political, social and eco- theless, strong domestic economic fundamen-22 | INVESTING IN DUBLIN – 2020 OVERVIEW | 23
SUMMARY OF INVESTMENT SALES – 2019
TOP 5 OFFICE TRANSACTIONS TOP 5 RESIDENTIAL TRANSACTIONS
PROP ER T Y P RI C E YIELD P U RC HA S ER P ROP ERT Y P R IC E Y I EL D P U R CH A S ER
Project Cedar Office €530m c. 5.0% Blackstone XVI Portfolio, €285m 4.0% IRES REIT
Portfolio, Dublin
Dublin City Centre
Five Hanover Quay, €197m 4.1% Union Investment Project Vert: 382 units at Elmfield, €216.1m c. 3.5% IRES REIT
Dublin 2 Leopardstown & Honeypark, Dún
Laoghaire, Co. Dublin
Nova Atria Buildings, €167m c. 5.7% Mapletree Dublin Landings PRS, €175.5m 4.1% Greystar
Sandyford, North Wall Quay, Dublin 1
Dublin 18
The Reflector, Hanover Quay, €155m 4.2% Deka Immobilien Point Campus Student €171m c. 4.75% DWS
Dublin 2 Accommodation,
Dublin 1
Charlemont Exchange, €145m 4.5% Vestas Investment 214 units at The Fairways, €108m 4.9% DWS
Dublin 2 Management Dún Laoghaire, Co. Dublin
TOP 5 RETAIL TRANSACTIONS TOP 5 INDUSTRIAL & LOGISTICS TRANSACTIONS
PR O PERT Y PR IC E YIELD P U RC H AS ER P ROP ERT Y P R I CE Y IE L D P U R CH AS ER
St. Stephen’s Green €175.5m c. 4.0% Davy Tesco Distribution Centre, €160m c. 4.3% KTB Investments and
Shopping Centre, Donabate, Co. Dublin Securities & KTB Asset
Dublin 2 Management
Pavilions Shopping Centre €71m 4.9% Irish Life Investment Compass Portfolio: Units at €30.8m 5.1% M7 Real Estate
(25%), Swords, Co. Dublin Managers Greenogue Business Park and
North Park, Co. Dublin
Mahon Point Retail Park, €56m 7.0% IPUT Unit at Dublin Airport €18.5m - DWS
Cork Logistics Park, Co. Dublin
Northside Shopping Centre, €49.2m 3.6% AM Alpha Units 4 & 5 Mygan Business €11.2m 4.8% Confidential
Coolock, Dublin 17 Park, Dublin 11
7-9 Henry Street, €44.3m 3.6% DWS Unit 1 Stadium Business €10.5m 6.5% Confidential
Dublin 1 Park, Dublin 15
Note: Large mixed-asset portfolio sales not included.24 | INVESTING IN DUBLIN – 2020 GUIDE TO DUBLIN | 25
DUBLIN’S
OFFICE MARKET
2019 was another exceptional year
for the Dublin office market with strong
occupier demand and a healthy development
pipeline contributing to the total take-up
of close to 310,000 sq.m by year-end.
2019 was the third strongest year on record with Despite the surge in demand, limited new of- South County Office Campus, Sandyford, Dublin 18
take-up again well exceeding the ten-year av- fice buildings were constructed between 2007
erage. There were 7 ‘mega-lettings’ whose size and 2015 in Dublin due to a shortage of devel-
exceeded 10,000 sq.m. These deals had a signif- opment finance and insufficient rental return,
icant impact on the market in 2019, accounting causing a massive shift in the landlord’s favour.
for 52% of take-up. The Technology, Multime- In 2015, office rents increased by 25% in one and Mastercard now recognising the appeal of Building 9 Cherrywood (Hines – 11,000 sq.m)
dia and Telecommunications (TMT) sector was year alone with continued growth evident ever well-connected suburban office locations such and Nova Atria South (Blackstone – 16,000
again the top performing sector in 2019 with since. as the Sandyford Business District where the sq.m). Areas close to amenities and on good
more than 165,000 sq.m or 53% of total take-up TMT sector has accounted for 75% of take-up public transport lines are considered attractive.
attributable to this sector. The largest TMT let- Since 2015, new development has emerged over the past three years. This trend will con-
tings were to Salesforce, LinkedIn, Facebook and across the city skyline to alleviate the demand tinue to evolve in 2020 as occupiers seek more
Amazon, which combined represented 115,397 side pressures curtailing the market. Between cost effective solutions.
Brexit
sq.m or 37% of total take-up. 2015 and 2019 almost 545,000 sq.m of new or Brexit is having an impact on the office mar-
refurbished office space was delivered in Dub- Increased occupier demand for office space ket in Dublin in particular with more than 80
lin, with the majority (76%) of this space having in non-CBD locations and the availability of companies having announced plans to move to
RECENT HISTORY been delivered in the city centre. well-serviced and well-located land for devel- or expand within Dublin since the 2016 vote.
In 2007, all construction activity in the Irish opment has led to increased development ac- BNP Paribas Real Estate have been tracking let-
property market ceased almost overnight. The tivity in city fringe and suburban locations. Key ting activity among these companies and note
office market was worst affected and prime
EMERGING TRENDS AND CURRENT developments delivered or under construction that more than 30,000 sq.m has been leased
rents fell from a high of close to €700 per sq.m
CYCLE during 2019 include the South County Office to firms including JP Morgan, Aptiv, Coinbase
to as little as €323 per sq.m in 2010 with lim- The focus of occupier demand has been large- Campus (Mr. Cyril McGuire - 28,000 sq.m), Two and Bank of America since the vote. In Q3 2019
ited take-up and vacancy rates fluctuating to ly on the city centre since 2015 but 2018/19 & Three Dublin Airport Central (Dublin Airport UK law firm DLA Piper signed a lease for a new
over 25%. In 2011 / 2012, the market started saw strong growth in take-up in in city fringe Authority – 20,000 sq.m), Block I Central Park office in Dublin 2. DLA Piper follow other UK-
to emerge from its slumber and demand in- and suburban districts, which accounted for (Green REIT / Henderson Park – 10,000 sq.m), based law firms Pinsent Masons, Fieldfisher
creased steadily buoyed by favourable take-up 29% of take-up in 2019. The south suburbs in Termini (Aldgate Developments / Starwood - and Simmons & Simmons who have also set
from Foreign Direct Investment (FDI) occupiers particular have seen increased activity with 20,500 sq.m), The Seamark Building, Elm Park up new bases here in recent years. Ireland has
predominantly. global companies including Facebook, Google (Chartered Land / Starwood – 17,000 sq.m), emerged as an attractive option for such firms€269 p.s.m.
€25 p.s.f. €377 p.s.m.
€35 p.s.f.
26 | INVESTING IN DUBLIN – 2020
€355 p.s.m. €484 p.s.m.
PARNELL
CONNOLLY GUIDE TO DUBLIN | 27
€33 p.s.f.
€45 p.s.f.
ST
BOT
O’CONNELL TAL
E L
L
S T
UPPER MARLBOROUGH €538 p.s.m. €570 p.s.m.
O'C
N
R
P A €50 p.s.f.
€549 p.s.m.
ON
€53 p.s.f.
NEL
€51 p.s.f.
ABBEY ST S T
€517 p.s.m.*
L S
E Y
A B B
ST
T
€377 p.s.m. HEN
RY
O’CONNELL €484 p.s.m. GEORGE’S DOCK
€48 p.s.f.*
in light of Brexit thanks to its common law and able. Rental levels in excess of these figures will €323 p.s.m.
€35 p.s.f. GPO €45 p.s.f.
ST
S T MAYOR SQUARE
€484 p.s.m.*
EL
€30 p.s.f. €388 p.s.m. J E R
V I S
SPENCER DOCK
CAP
English-language legal system. be achieved in certain instances where occu- €36 p.s.f. €45 p.s.f.* €570 p.s.m. THE POINT
€53 p.s.f.
JERVIS
piers lease premium penthouse suites or can SMITHFIELD €527 p.s.m. TARA ST
C I T
FOUR COURTS €49 p.s.f. Y Q U A
The current tech boom in Dublin is also likely to avail of attractive lease flexibility and existing
Y
be in part linked to Brexit with US multination- quality fit-outs. Inducements by way of rent TRINITY
€549 p.s.m.
als expanding rapidly in Ireland rather than in free are standard and are generally between D A M
E S T
€51 p.s.f.
P E
the UK with a view to retaining access to Euro- 6-9 months for standard lettings in CBD and
A R
S E
PEARSE S T
S T
€646 p.s.m.
M
S T
pean markets and talent. 12 months upwards for prime suburban offices.
I A
€60 p.s.f.
S T
L L
S
E ’
W I
S T
N
R G
R I N
T O
G S
DAWSON
H
E N
K
G E O
D
U T
A F
R D
R I C
G R
S O
G R E A T
P A T
€614 p.s.m.
€570 p.s.m. €57 p.s.f.
Serviced Offices Total take-up 2019:
S O U T H
€53 p.s.f.
GRAND CANAL DOCK
ST. STEPHEN’S GREEN M
309,847M 2
O
The serviced office or co-working sector contin-
U
N
T
Q
S
S
T
L O
N
C U W
IO
F F E E
R
ues to have a visible impact on the Dublin office
S T
R
R
E
M
A V E
B A T H
market with existing operators including We-
Prime rents 2019:
S T
Work and Iconic Offices as well as new entrants
Y
E S B U R
L
€581 p.s.m.
P
R D
N
M
Knotel leasing a combined 8,287 sq.m during T O
2 €603 p.s.m.
€670/M
I A
G
H E Y T
D I
N
€54 p.s.f.
L
A D
I L
€56 p.s.f. H
W
Z
2019. This is a marked decline relative to 2018
I T
LANSDOWNE ROAD
F
HARCOURT
which saw more than 40,000 sq.m leased to DART & LUAS P E M
R D
B R O
R D K E
L R D
P I
E S
OFFICE RENTS MAP
S H E L B O U R N E
M
such companies. In total, serviced office provid- The BNP Paribas Real Estate Dart & Luas Office
€592 p.s.m.
ers now occupy more than 120,000 sq.m across Rental Price Map1 charts average rental levels DUBLIN CITY CENTRE €55 p.s.f.
Dublin with a number of further deals in pro- 2017-2019 along the various public transport CHARLEMONT
gress. So, despite substantial doubts over the lines in Dublin. This map aims to demonstrate
Source: BNPPRE Research
co-working model during 2019, this buoyant the spread between headline rents achieved in
market trend looks set to last. prime CBD locations (with the most prime loca- including a standard 12 month notice period. In fice market and are becoming more common-
tion being in the Dawson Street area) vis-à-vis many cases, a rental penalty may be a condi- place. In default of agreement there is a provi-
The role of the serviced office sector is nota- those being achieved in other parts of Dublin. tion of the break option particularly in the city sion in the lease for referral to third party and
ble in relation to Brexit with many of the Brexit Rents in city fringe and suburban locations are centre. Inducements by way of rent free periods the lease will dictate whether an arbitrator or
movers we have identified currently operating lower but are rising while CBD rents remain are standard and are generally between 6-9 independent expert will be elected to set the
out of serviced offices across the city. This is a stable as occupiers move away from the city months for standard lettings in the CBD and 12 new rent.
trend that is likely to continue with many com- centre locations, attracted by the delivery of months upwards for prime suburban offices.
panies opting to take flexible office space to set modern office accommodation, improved ac- On the basis that tenants occupy premises for
up their Irish operations before committing to cessibility and access to talent pools. Upward only rent reviews were prohibited in a period in excess of 5 years, they have an au-
a longer lease. leases which commenced after the 28th Febru- tomatic right of renewal by law on expiry of the
Typical lease terms in the current market are ary 2010. Rent reviews, where they are set out lease and can apply for a new lease of 20 years
15-20 years with the earliest breaks for new in leases from February 2010, are to the market or such lesser term as a tenant may nominate.
RENTS AND LEASE TERMS Grade A developments achievable at year 10. rent on an open market basis (i.e. upwards or It will not however be fixed for a period of less
Overall the office sector has seen the strongest Suburban office space can generally expect to downwards). Rent reviews are usually every 5 than 5 years without the landlords agreement.
rental recovery of all asset classes with rental achieve break options closer to year 10 and years. The new rent may be agreed between the Under recent legislation, all tenants of com-
values currently at a level that has now sur- perhaps sooner for secondary office space. landlord and tenant (or respective represent- mercial premises can contract out of their stat-
passed the previous peak according to MSCI Breaks are usually subject to certain conditions atives) and is based primarily on comparable utory right of renewal providing greater flexibil-
data. Prime CBD office rents remain in the region 1 DART and LUAS are light rail services operating in Dublin. market lettings. The emergence of CPI linked ity to landlords and tenants when negotiating
of €670 per sq.m with moderate rental growth City centre figures are calculated on the basis of net internal rent reviews and % cap and collar mechanisms the terms of the lease.
area (NIA), while suburban rents are based on the gross
expected in 2020 as new supply becomes avail- internal area (GIA), as per market norms. particularly at year 5 has emerged in to the of-28 | INVESTING IN DUBLIN – 2020 GUIDE TO DUBLIN | 29
SUPPLY being developed with the end user in mind. occupiers such as Google, Facebook and Mas-
This means that leasing negotiations can com- tercard taking large amounts of space in the
Close to 220,000 sq.m of office space was deliv- mence earlier than they otherwise would have south suburbs in particular during 2019. Never-
ered in 2019, bringing total office stock in Dub- and allows the occupier to collaborate with the theless, in contrast with the CBD, several large
lin to more than 4.2 million sq.m by year-end. developer throughout the design and construc- development sites remain active in the suburbs
Construction is underway on a further 310,000 tion process. In addition, securing a blue-chip to service continued growth in demand. We
sq.m of space due for delivery during 2020. Of tenant cements the eventual investment value expect rent levels for prime suburban office
this total, almost 50% is pre-committed which of the asset with overseas purchasers in par- developments to continue to increase for this
further underpins the strength of tenant de- ticular attracted by the secure and stable long- reason.
mand in the Dublin market. This means that term income on offer.
despite the significant levels of stock under The forecast for the Dublin office market re-
construction, strong demand for office space There is a growing emphasis on green initia- mains positive. Foreign Direct Investment,
and the potential for further growth thanks tives and smart technology within buildings, largely from North America but increasingly
to rapid TMT expansion and Brexit relocations particularly among global technology and fi- from the UK and other European locations, re-
mean Dublin is unlikely to see an oversupply nance operators. These occupiers are attracted mains a key driver of demand, while Indigenous
of office stock any time soon. Despite this, new by the potential to build a community and scale growth and Brexit-related actively will further
office development activity has slowed some- up quickly and easily without disrupting staff. support take-up in 2020 and beyond.
what over the past year with less speculative BNP Paribas Real Estate see this as a growing
projects moving on site. trend. Similarly, we see the refurbishment and It is difficult at this point to predict the impact
repurposing of properties across all sectors as that the current COVID-19 pandemic will have
Development during the 2015-2018 period was a growing trend for 2020. This will be particu- on the office market. We expect office take-up for
concentrated around the city centre, with more larly relevant for the office market in light of Q1 2020 to be particularly strong, above 100,000
than 90% of all space delivered in 2018 being sustainability strategies with older stock re- sq.m, thanks to the inclusion of a number of
located in Dublin 1, 2 or 4, largely around the quiring substantial retrofitting in order to re- large transactions which were carried over from
North and South Docks. This is consistent with main attractive to increasingly ‘green-minded’ Q4 2019. However, the restriction of movement
the pattern of demand with more than 70% of occupiers. and closure of non-essential businesses is likely
take-up occurring in the city centre. Neverthe- to impact negatively on Q2 take-up with many
less, as with demand for space and take-up, With a significant quantum of new office supply companies suspending leasing transactions until
and as a result of almost all of the prime city under construction, the Dublin office market is the situation becomes more clear.
centre development sites being accounted for, expected to function at much more sustaina-
development began to move out of the city in ble levels going forward, allowing occupiers On a broader scale, a large scale ‘work from
recent years with close to 40% of the space de- reasonable choice, developers viable margins home’ experiment has been unexpectedly trig-
livered during 2019 located in city fringe and and informed investors competitive returns. gered which may impact the occupier market in
suburban locations. The high levels of pre-letting activity on new- the longer term. On one hand this may prompt
ly delivered office stock has led to a significant companies to reconsider prior reservations in
tightening of supply in city centre locations, in relation to flexible working arrangements, lead-
OUTLOOK 2020 particular Dublin 1, 2 and 4. With a large pro- ing to a decline in the amount of space needed.
Recruitment is becoming an increasingly im- portion all of the city centre development pipe- On the other, it may reinforce the value of the
portant consideration for occupiers and many line for 2020 already pre-committed, supply physical office and the benefits associated with
TMT occupiers are using their real estate to shortages will push occupiers with large size a shared workspace. Time will tell. Keith O’Neill
attract and retain staff in a very competitive requirements to city fringe or prime suburban
Executive Director
environment. We are now seeing a shift to- locations this year. Similar shortages of space Head of Office Agency
wards offices and campus-style developments are now being seen in suburban location with BNP Paribas Real Estate Ireland30 | INVESTING IN DUBLIN – 2020 GUIDE TO DUBLIN | 31
DUBLIN OFFICE MARKET – KEY DISTRICTS
The Dublin office market provides in excess of 4 million sq.m of office space and can be divided in
to the following key districts
DUBLIN’S
D ISTR ICT
Prime CBD
R E N T / SQ.M
€570-700
C O M ME N T
The traditional central business district (CBD) is the most historic
and sought after location within the city. The district surrounds
RETAIL MARKET
St. Stephen’s Green and the main shopping hub of Grafton Street
in Dublin 2. Office space in this area is at a premium and in high
South Docks €610 Emerged in the early 2000s as an alternative to the traditional
CBD and at first attracted major legal firms but since has become Dublin with a vibrant, young and cosmopolitan braced this model likely to benefit most from a
the location of choice for the TMT sector. This is the part of the population is Ireland’s capital city and the pri- move to online retailing during this period.
city that is most active in terms of new activity and take-up. mary retail destination. Approximately 1.9 mil-
lion people live in the Greater Dublin Area with We have already seen short-term impacts on
North Docks & IFSC €570 Dublin’s earliest docklands regeneration scheme led to the
this figure set to grow to 2.2 million by 2031. economic growth and business activity with
development of the International Financial Services Centre (IFSC)
in the early 1990s. The IFSC is home to some of the world’s most
store closures leading to widespread job loss-
important financial institutions. Since the early 2000s develop- At the beginning of 2020 the outlook for the es. On this point, the government have made
ments have continued beyond the IFSC and eastwards along the retail market was extremely positive. While great efforts to assist those affected and it is
North Docks. the retail sector may have been undergoing a hoped that in many cases the impact will only
well-documented structural shift, the consumer be temporary. Long-term consequences are
Ballsbridge / Dublin 4 €580 Dublin 4 largely provides high-end residential accommodation
with a growing commercial district largely centered around Balls- economy was in a healthy place with just about still unknown, however the current consensus
bridge. This is an affluent part of town with growing appeal and every measurable KPI looking favourable. This amongst economic commentators is that a re-
increasing levels of construction activity. coupled with a well-documented undersupply bound in the global economy will commence in
of prime retail property, a legacy of underde- H2 2020.
North Suburbs €250-355 Home to the city’s airport, this part of Dublin is seeing increased
velopment following the ‘Noughties’ recession,
levels of activity. The new development at Dublin Airport Central
meant that retailers in almost all sectors were When the clouds disperse on COVID-19, other
and the planned Metro North rail line are likely to be the catalyst
performing well. realities such as Brexit will need to be met head
for further new development.
on by retailers. This chapter will outline the dy-
South Suburbs €250-320 The most established “out-of-town” location for occupiers, it has Events of recent weeks following the global namics of the Dublin retail market, which are
seen notable take-up in the last 18 months and continues to see outbreak of COVID-19 have caused enormous evolving alongside consumer behaviours and
considerable demand as occupiers identify cheaper alternatives
disruption for Irish consumers and retailers needs and in keeping with a modern, vibrant
to the city.
alike. This was particularly pronounced in the European capital.
West Suburbs €120-240 Office locations in the southwest suburbs of Dublin, largely concen- F&B and leisure sectors which were hit im-
trated around Citywest and Tallaght in Dublin 24. These are further mediately by restrictions on movement and
from the city but the LUAS Red Line provides connectivity to the tourism. Cafés and restaurants have moved to
DUBLIN CITY CENTRE RETAIL
city centre. The large amount of residential development activity as take-away only, while non-essential business- Dublin has a relatively small in-town retail of-
well as plans for a major extension at The Square Shopping Cen- es were told to close. Supermarkets and phar- fer primarily focused in the immediate environs
tre in Tallaght may encourage further development in the coming macies are trading strongly and online grocery of two pedestrianised streets; Grafton Street
years. delivery services are also experiencing high de- south of the River Liffey and Henry / Mary Street
mand. What has become very clear is that the on its north side. Unlike many other European
omni-channel approach to retailing is more im- capital cities, Dublin does not have a defined or
portant than ever with retailers who have em- recognized ‘luxury’ retail Street with many up-32 | INVESTING IN DUBLIN – 2020 GUIDE TO DUBLIN | 33
market retail brands to date remaining content There are a number of complementary streets
to trade as concessions within Brown Thomas. intersecting with or running parallel to Grafton
Street. Dawson and Nassau Street in particular
have become more important in the retail hi-
ILAC
Shopping Centre erarchy given the launch of the new LUAS line
TREET TREET
and the substantial development activity taking
MARY S HENRY S
place in the area. St. Stephen’s Green Shopping
JERVIS
Shopping Centre
ARNOTTS
Department Store
Centre, which was developed in 1988, is the
Liffey
only enclosed shopping mall on Grafton Street.
River
DUBLIN The shopping centre was in joint ownership un-
CITY CENTRE
til 2019, when the entire was acquired by Davy
Temple Bar District for more than €175 million. With the centre
now under sole ownership it is likely that plans
Trinity College
BROWN THOMAS for its redevelopment will progress.
TREET
Department Store
TON S
GRAF
Henry Street and Environs
ST STEPHEN’S GREEN
Shopping Centre Henry Street on the north side of the city cen- Grafton Place, Dublin 2
tre perceived to be less upmarket than Grafton
St Stephen’s
Green Park Street and more mass market. Mary Street, an whose combined retail area represents 45% of ing the extremely limited of supply of larger re-
extension of Henry Street, was was consid- the total. The Penneys store which doubles as tail floor plates in the south city centre and also
ered secondary to Henry Street until the Jer- its global HQ is also believed to be their busiest units capable of accommodating the extensive
Grafton Street and Environs vis Shopping Centre opened in 1996. Today the outlet in Ireland. demand from established or prospective F&B
Located on the south side of the River Liffey, two streets are seen as one long pedestrianised operators seeking a city centre presence.
Grafton Street is a 515 metre long pedestri- high street which act as the principal retail Henry Street houses two enclosed shopping
anised street and Ireland’s highest profile and thoroughfare on the north side of the city. Hen- schemes, Jervis Centre, which opened in 1996, Construction and leasing is progressing on the
most sought-after high street retail location. ry / Mary Street is approximately 450 metres and the Ilac Centre which was originally devel- redevelopment of Central Plaza (former Central
The street is home to 90 retail units with a long, bounded by O’Connell Street to the east oped in 1981 has recently been substantially Bank HQ) on Dame Street which will include
combined retail area of over 34,000 sq.m. The and Jervis Street to the west. There are 62 re- refurbished. The long planned ‘Dublin Central’ some 3,270 sq.m of retail and 1,460 sq.m. of
major occupiers on the street are the upmar- tail units on the street, less than the 90 units development site is located immediately ad- F&B space along with 8 floors of office space
ket department store Brown Thomas and M&S on Grafton Street, however the units are larger joining. If and when this scheme gets off the on completion. This development will link the
who trade directly opposite one another. The with ground floor areas (not including depart- ground it will improve the attractiveness of prime Grafton Street retail pitch with Temple
iconic Bewley’s Café represents a key attraction ment stores) averaging 187 sq.m compared both the Ilac & the general Henry / Mary Street Bar, Dublin’s most important leisure and tourist
and focal point on the street. The tenant line with an average of 132 sq.m on Grafton Street. retailing precinct. destination, a location with many similarities to
up has been reinvigorated with the recent ar- London’s Covent Garden.
rival of a host of international retailers includ- A notable feature of Henry / Mary Street is the
ing The White Company, Rituals and The North number of department stores. There are five
Dublin City Centre Development Pipeline Developers Meyer Bergman and BCP are also
Face. Unlike many other European capital cities, department stores on the street – Arnotts, Significant regeneration is also taking place in constructing a major retail and office devel-
Dublin does not have a defined or recognised Dunnes Stores, Debenhams, Marks & Spencer the form of major mixed-use developments ei- opment on the corner of Dawson and Nassau
‘luxury’ retail pitch with many of the upmarket and Penneys (Primark) – with a combined retail ther under construction or in planning. Street which will deliver a total of 7,728 sq.m
retail brands to date remaining content to trade area of almost 55,000 sq.m or 67% of the total of retail space. The landmark scheme, which
as concessions within Brown Thomas. retail area on the street. This compares with On the south side there are two developments is expected to become a natural extension of
just two department stores on Grafton Street planned which should go some way to address- the Grafton Street shopping precinct, will beYou can also read
