Retail yields slip but beauty helps pick up fashion slack for landlords
Ireland's commercial landlords have seen a yields soften over recent months, in line with the trend being experienced in other European markets, according to a report from commercial property specialist CBRE.
However "robust" demand for retail premises from the growing healt, wellbeing, and beauty and leisure sectors, have resulted in commercial landlords becoming less reliant on the fashion sector, according to the bi-monthly report.
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While the commercial property market experienced a "busy" first half of 2019, transactional activity in many sectors is expected to be down quarter-on-quarter in the three months to June 30, fas a result of several deals in the works that were not completed by the end of last month.
On the back of this, the second half of the year is likely to account for the lion's share of transactional activity in many sectors of the commercial property market in 2019, the report said.
CBRE Ireland director and head of research Marie Hunt said: "Although Brexit uncertainty will now carry over into the autumn, the Irish economic backdrop remains solid, buoyed by continued strong job creation, which in turn bodes well for the market."
With the exception of the retail sector, CBRE said that prime yields in the Irish market remain stable at the mid-year point, and, in some cases, have potential to harden further during the second half of the year.
In Cork, while supply remains constrained, investor demand for well-located properties is "healthy".