Investment in Irish retail parks has reached €500 million since 2021, representing 25% of all retail property investment during this period, according to new research from Cushman & Wakefield Ireland.
The firm’s 2024 Retail Park report shows Ireland’s total retail park space now stands at 1 million square metres, with Dublin accounting for 238,000 square metres across 16 parks. National occupancy rates have reached 96%.
Prime rents in the sector have climbed to €441 per square metre as of mid-2024, with prime yields at 6%. Regional retail parks have seen yield compression since 2021, driven by increased investor demand outside Dublin.
DIY & Garden Centre operators, alongside Furniture & Home Furnishing retailers, occupy more than 40% of total retail park space. These categories are outperforming core retail sales growth, backed by Ireland’s population expansion and remote working trends.
Five retailers now occupy over 30,000 square metres each. Active expansion continues from international brands including JYSK, Maxi Zoo, Dreams, and EZ Living, contributing to the sector’s high occupancy rates.
“Lower occupancy costs versus shopping centres have proved particularly attractive for international investors,” says Karl Stewart, Head of Retail at Cushman & Wakefield Ireland. “The combination of a strong domestic economy and attractive yields has driven significant investment activity.”
The research identifies key growth drivers including:
- Near full employment levels
- Sustained population growth
- Improving wage growth prospects
- Strong performance in DIY and home furnishing categories
- Limited supply of new retail park space
According to Tom McCabe, Head of Research at Cushman & Wakefield Ireland, retail parks’ exposure to outperforming retail categories has heightened investor interest. “Irish retail parks are heavily exposed to retail sales categories that are outperforming core retail sales, making them particularly attractive to investors.”
The report indicates continued yield compression in regional locations, suggesting growing investor confidence in assets outside Dublin.
