Monday 23 October 2017

Grafton Street is now fifth most expensive location to rent in the world

Grafton Street: high rents
Grafton Street: high rents

Donal Buckley

Dublin city centre is ranked last in the league of Europe's top 20 shopping destinations, but Grafton Street is ranked fourth highest in terms of European retail rents and it has also climbed two places to rank as fifth most expensive in the world's retail rents league.

Consumers are estimated to spend €2.34bn in Dublin city centre, which is behind Manchester in 19th place with a €2.4bn spend in Experian's European retail destination survey.

London's West End came tops with an estimated shopping spend of €6.2bn a year, compared to €5.9bn for Paris. Rome came third with a €5.8bn spend, and Madrid fourth with a €5.4bn spend.

In a separate Jones Lang LaSalle (JLL) survey of top European city rents, Grafton St ranks fourth highest as its landlords charge rents averaging €4,951 per sqm. Henry Street came 10th, with annual average rents of €3,763 per sqm.

But another survey of the world's most expensive main streets says that Grafton St rents are even higher at €5,621 per sqm. As a result, it moved up two places to fifth most expensive in the world.

This survey, by Dublin agents Lisney and its international allies Cushman & Wakefield, shows New York's Fifth Avenue as the most expensive, where rents average €12,612 per sqm -- a 23pc increase on last year.

Hugh Markey, retail director at Lisney, said Grafton St rents rose 5.3pc this year, partly as a result of recent lettings to fashion chain Tommy Hilfiger.

However, he points out that the high rents were now reflected in high availability and, furthermore, the key money received when leases were sold on has tumbled with the decline in consumer spending.

"There will be some easing in the headline rents, although certain retailers will continue to buck the trend," he adds.

Nevertheless, he argues that opportunities "exist to locate on Ireland's premium street for virtually no premium cost, something unheard of in recent years".

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