Two-tier retail property market set to continue

A two-tier retail property market is expected to become more prominent this year, but further improvements in rent conditions are also likely.

According to property agent Savills, the two-tier market — where longer-serving retailers remain exposed to legacy rents and upward-only reviews while new entrants benefit from lower rents and more flexible lease terms — which has been evident for the past three years is likely to continue.

This pattern has helped attract large international retail names like Abercrombie & Fitch and Superdry to Ireland in recent times, Savills noted, adding that the influx of new market entrants will continue “as international retailers focus their attention on Ireland”.