Grafton Street key money at zero
Published 20/06/2010 | 05:00
WHERE retailers once shelled out up to €700,000 in "hello money" to rent retail premises on Grafton Street, now key money has hit zero for some units.
Cafe Sol coffee-chain owner Emmet Daly said no key money was paid for the lease his business recently took over on Dublin's main shopping thoroughfare.
"We bought the lease from an O'Brien's Sandwich Bar outlet," he said. "And key money just didn't apply -- that's the market reality at the moment."
"Where it applies, key money is down to about half," said Robert Colleran, of Finnegan Auctioneers in Dublin.
Laura Ashley is believed to be looking for €300,000 key money from the Disney Corporation for its current home on Grafton Street, because the American entertainment giant is particularly keen on that prestigious site.
Typically, key money of at least €100,000 would have applied for a food outlet to get a spot on Grafton Street, and many multiples of that for a clothing or other retail outlet, on top of the actual lease price.
Now reverse premiums frequently feature as a sweetener, Mr Colleran said.