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Are commercial rents too high?

  • 21-10-2021 11:27am
    #1
    Geuze
    Registered Users Posts: 13,064 ✭✭✭✭


    The rent for the FootLocker show shop on Grafton street is 750k pa, or nearly 15k per week.

    That is over 2,000 per day, 365 days a year.

    https://www.independent.ie/business/commercial-property/foot-locker-says-its-grafton-street-rent-shouldnt-be-owed-for-period-of-virus-lockdown-39592450.html

    I have not been in this shop, is it a large store?

    In my opinion, this rent is way, way too high.

    Now, on the other hand, you might reply to me: "but the tenant agreed to that rent", that is true.

    If they sell 100 pairs of shoes a day, the rent is 20 euro per pair.

    In my opinion, these massive rents contribute to the excessive price level in Ireland.

    We know that prime retail rent in Dublin is double or more than the rents in London (City), Edinburgh, Manchester, Birmingham.

    Even retail rents in Galway (pop = 80,000) exceed London (City), Edinburgh, Manchester, Birmingham.


    What can be done to drive down these crazy rents?



Comments

  • #2
    Wanderer78
    Registered Users Posts: 28,803 ✭✭✭✭Wanderer78


    think ive been in it before, if true, it is a decent size, but those rents are off the walls, how the hell can a retailer deal with such inflated prices!!!

    ive no idea how we truly approach this one, but allowing speculators to become more involved in our markets has been a train wreck, its just highly extractive, most truly dont benefit from it. the only potential solution ive heard so far in relation to retail is to encourage the browse only model, whereby customers only try goods in store, but when purchasing, the goods would be delivered to their residence, in turn, retailers wouldnt need as big as premise, as most goods would be stored off site.



  • #3
    NSAman
    Registered Users Posts: 3,386 ✭✭✭NSAman


    The price of all rents in Ireland are crazy. Commercial retail rents are a cartel.

    rent increases which are “reviewed” by an arbitrator who gets a percentage of the new rent as a fee? the whole thing is a joke. We wonder why prices in Ireland are higher ?

    upwardly only rent increases of old, should never have been put in place. The greed in the commercial sector has been there a long time and is endemic in the sector. No wonder most shops now are chains and foreign owned.



  • #4
    Wanderer78
    Registered Users Posts: 28,803 ✭✭✭✭Wanderer78


    https://www.boards.ie/discussion/comment/118053276#Comment_118053276

    by placing major sectors such as the fire sectors in control of these markets, theyve created a positive feedback loop in regards costs, which only truly benefits themselves, this process ultimately leads to monopolisation of markets, again only truly benefitting even bigger monopiles, crushing many sme's out of existence



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