Former HMV Premises on Grafton Street for €1million annually.

Bullseye1

It looks like Landlords still haven't realised we are in a recession. Good luck with getting a tenant at that price. What are the rates on top of this?

http://www.rte.ie/news/business/2013/0403/379590-hmv-grafton-rental/

Bullseye1

Just checked Savilles brochure:

We are verbally informed by the local rating authority of the rates payable for 2013 are €146,486.42

http://search.savills.ie/getmedia/ceb85db7-b5e9-4d05-9b6e-a829740bea4c/65---66-Grafton-Street-Brochure.pdf.aspx?ext=.pdf

Custardpi

What were HMV previously paying for the premises, the same or more money?

Ray Palmer

So if they get it will you come back and wonder how much money shops make?

Bullseye1

It appears from the Times it was reduced from €1.7 million to €1million.

cson

€1m isn't OTT for a premises on the main shopping thoroughfare in Dublin City Centre. That place is fairly big too iirc. A UK high street store would easily pay that for the footfall you'd get in that area.

Quick example but that place is made for an Official Apple Store and I guarantee you if they did come, Apple would piss all over that rent figure with the money they'd generate off a shop in that location.

Swampy

It's a spicy meatball alright.

Joe Hart

Seems reasonable enough for the location and size. HMV didn't close because of overpriced rents.

P_1

Have to say that a million a year is surprisingly low for a unit that size on Grafton Street. A few years back some of the smaller (think about a fifth the size) units there were being rented out for 7 figure sums

Custardpi

P_1 wrote: »

Have to say that a million a year is surprisingly low for a unit that size on Grafton Street. A few years back some of the smaller (think about a fifth the size) units there were being rented out for 7 figure sums

You may not have been following the news too closely the past few years but there's been some economic changes that could impact on the rent a new retail tenant would be prepared to pay for an outlet. A reduction of that amount in 2007 would have been unheard of, not now.

djimi

Custardpi wrote: »

You may not have been following the news too closely the past few years but there's been some economic changes that could impact on the rent a new retail tenant would be prepared to pay for an outlet. A reduction of that amount in 2007 would have been unheard of, not now.

It's not just a retail until though; it's arguably the most prime available retail unit in the entire city. I don't follow commercial letting that closely so I don't know how that compares to other rents on Grafton street, but if nobody can/will pay that much then it will sit empty or let st a reduced rent. But as has been said there are companies who can afford to rent at that price, and to have a premise of that size on grafton st would mean that a rent of that size is doable for them.

The_Conductor

There have been deals cut just to get tenants into units in Grafton Street and Stephen's Green shopping centre, typically rent holidays, payment of rates and in at least one case on Grafton Street, a straight % of gross sales, in-lieu of rent.

The issue is banks aren't lending, people aren't spending- and its the worst possible environment since possibly the 70's to try and open a business.

The 1 million rent- is fundamentally set at sound level- and can be justified. This doesn't matter though. Is there someone of a reasonable calibre seeking retail space in the area? No, is the short and simple. We certainly don't need another phone shop on Grafton Street either.

There are a finite number of ways to skin a cat- and we're up against the wall. Unless you have a longterm tenant lined up, willing and capable of paying the rent sought- then you're in trouble. We are in trouble.

Marcusm

Many multiples have focussed on out of town centres (Dundrum etc) as the footfall is there or shopping, not a mix of passing through and shopping. It's a large store with established multi floor use which would have rented like a hot snot in the boom. What would help Grafton St would be a halo tenant - one which creates a buzz and attracts footfall in its own right. A&F has already set up so I think that, irrespective that many see it as over priced/unnecessary, an Apple Store would be a great addition for all the other retailers on the street. It would bring in gawkers and spenders. No idea if it would even be on their radar, though.