Record Dublin rent is set: ThePost.ie


TCH Archives > Sunday Business Post > 2003/11/23 > Record Dublin rent is set

Record Dublin rent is set
Sunday, November 23, 2003

By Neil Callanan
River Island is to pay Arnotts €2 million a year in rent for its Grafton Street store.

That equates to €15,000 per square metre, more than double the previous highest figure.

The previous Zone A record for the street, just over €6,200, was set earlier this year when O2 agreed to lease the former Thornton's shop at 87 Grafton Street.

In Dublin, Zone A rents are typically paid for the first six metres of the unit from the street or thoroughfare. Zone rental values are halved for every subsequent six metres - but there are usually only four zones.

"The River Island rent won't be matched for years," said one retail source. Another said it was a significant benchmark, but could be explained by the size of the shop, which is among the biggest on the street.

The letting will highlight the rental gap between Grafton Street and Henry Street, where Zone A levels are around €4,305 per square metre. The redeveloped Roches Stores on Henry Street, which has Zara among its tenants, will also boost business, while the owners of the Ilac shopping centre have also applied for planning permission to redevelop.

Henry Street rents are expected to move towards those on Grafton Street following the completion of the Luas line and the upgrading of O'Connell Street. Retail agents say it is difficult to justify the gap.

A recent report by Lisney's international affiliate, Cushman & Wakefield Healey & Baker, finds that, taking the most expensive retail location in each country,Grafton Street is the tenth most expensive location in the world. The average rent per square metre on the street is €2,304, making it more expensive than the high streets in Milan, Tokyo, Amsterdam and Madrid, among others.

Fifth Avenue in New York remains the most expensive retail location in the world with average rents of €7,967 per square metre. River Island on Grafton Street: its rent is the highest yet in the area