Leases on top shopping street put up for sale

Eight leases on one of Dublin’s most prestigious shopping streets have been put up for sale as the combination of high rents and the credit crunch hits retailers.

With some rents going for around €600,000 a year, Grafton Street is ranked the fifth most expensive street in the world.

But with a slump in consumer spending traders are finding it more difficult to meet the high costs.

Hugh Markey, retail director at Lisney, said it was unprecedented to have so many leases on the market and claimed there could be more.

“They are not all officially on the market or have boards on them but certainly there are at least eight,” he said.

“The nature of retail at the moment means that it is more difficult.”

Mr Markey said Grafton Street was a trophy location but claimed the rents have become so high they may have become unsustainable for some retailers.

There are around 100 shops on the street, which has seen an injection of new stores recently despite the downturn.

These include Tommy Hilfiger, which pays close to €11,000 per square metre, and Ireland’s first Tiffany Co.

Rents have jumped around 60% in the last three years, although Lisney has recorded a small drop this year.

Mr Markey said the common factor was that most of the leases on the market were for smaller outlets of around 40 to 50 sq metres.

None of the larger flagship shops on the street are thought to be among the group.

Dublin Chamber of Commerce said that in the current economic climate members were calling for rents to drop.

Spokesman Patrick King said retailers hit by the downturn are being forced to offer discounts to woo shoppers.

But he added there was also a need for the right type of retailers to safeguard the street’s prestigious character.

“It’s quite clear that it’s (rent) too high,” Mr King said.

“Particularly in the current climate our members would like to see those prices come down.

“It is a concern. We have to ensure that the right quality of shops come here... but it’s quite clear that property prices need to come down.”