Pop-up shops likely to be short term feature of Cork's retail landscape

Prime retail spots in Cork ‘severely hit by the pandemic’, Lisney report finds

The largest commercial investment deal in Cork in Q3 of 2021 was the €11m receiver sale to a private investor of the East Village, Douglas, Cork. Picture Dan Linehan

POP-up shops will remain part of the retail landscape in prime shopping areas in Cork city in the absence of established overseas brands entering the market, according to the latest report from estate agents Lisney.

In its Q3 outlook report examining commercial activity in Cork, the agent notes that prime retail spots “have been severely hit by the pandemic, with the closure of many high-profile brands, most notably on Patrick St”.

The largest casualty was Debenhams, which closed its Patrick’s Street store in April 2020.

The report says historically, these prime shopping areas were strong options for landlords paying the highest rents and driving excellent footfall. Lisney say there is no “quick fix solution” and unoccupied units are likely to be taken on by pop-ups in the short term.

The report notes that the pandemic-related surge in online shopping “appears to have abated somewhat “ and it predicts a “further shift towards AI (artificial intelligence) and AR (augmented reality) in the medium term" as part of the shopping experience.

The report also looks at activity in the office and industrial sectors, as well as investment transactions, where the largest deal in Cork was the €11m receiver sale to a private investor of East Douglas Village, essentially an entire street of mixed-use development. The only other investment deal in Cork was in Little Island, where a 2,000 sqm office property let to MACOM Technology Solutions sold for €3.6m.  Investment in the private rented sector (PRS) was quiet, in contrast to the national picture. 

The Cork office market was also subdued, with the picture “distorted” by Apple taking over 3,400 sq m in Horgan’s Quay. A pick-up in office market activity is predicted as people return to work.

Lisney is also predicting more occupier demand, particularly from the foreign direct investment sector as international travel resumes. 

Activity in the industrial sector was strong, but transactions were limited  by tight supply and an extremely low vacancy rate. Headline rents are growing in the sector due to high demand and low supply.