Prime retail units in Limerick city centre hit the market

THERE HAS been a major development in the commercial sector in Limerick with a portfolio of prime properties valued at €10m coming to the market.

Six retail units - located close together on Bedford Row and Henry Street in the city - were offered for sale late last week.

Selling agent Gordon Kearney, managing director of Rooney Auctioneers, described them as “flagship commercial properties”.

Four of the six premises are occupied: Unit 10, Henry Street (Hamptons restaurant) which has a guide of €3m; Unit 5, Bedford Row (Noels Menswear) valued at €1.15m; Unit 6, Bedford Row (Schuh) with an asking price of €2m and Unit 8, Henry Street (TechStar) costing around the €750,000 mark.

Mr Kearney stresses that “tenants will not be affected” following the sales.

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The remaining two are vacant - Unit 9, Henry Street (formerly Laura Ashley) and Unit 3, Bedford Row (previously McGovern’s) with guide prices of €1.5m and €1m respectively.

The six retail units are part of the City Central portfolio - made up of the Savoy Hotel, apartments and retail built in the mid-noughties. It is understood the development was purchased from the receiver by Kirkland Investments who are now selling the retail part of the portfolio.

Mr Kearney expects interest from investors and business owner-occupiers.

“There are always commercial property investors out there looking for modern, purpose-built commercial properties that are let to excellent tenants. If you go around the city nearly everything else is 200-year-old buildings that have been modified or modernised. City Central is special because these are relatively modern and is why they are going to jump out ahead of all of the other commercial properties that are in older buildings. These are turn-key.

“Plus, the location - they are right in the thick of the city centre next to Dunnes multi-storey car-park, on Bedford Road with Spitjack, The Buttery, Regus, Bank of Ireland and coming up to the new O’Connell Street,” said Mr Kearney.

Regarding the two properties that are unoccupied the vastly experienced estate agent said there is a changed retail landscape post Covid.

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“It was changing prior to Covid and I think the transition to online has been accelerated during the pandemic. People that would not normally have been buying online were pushed into it during Covid. I know retailers out there are rethinking their strategies for the future. The feedback I am getting is that bricks and mortar will always play an essential part of their business. So much can be done online but people still want the shopping experience of going to town, having a coffee or a bite to eat and trying on clothes or shoes,” said Mr Kearney.

The most enquiries he gets for retail units in the city are from cafes and restaurants, hairdressers and beauty salons - none of which can be physically replicated online.

“An interesting dynamic is the amount of professional service providers that have enquired about ground floor retail, for example, accountancy and solicitor firms. They would traditionally have been on the upper floors but are now looking at ground floor for wheelchair accessibility, people with buggies and have a shopfront to display their wares. It could be a very different dynamic for the city centre,” said Mr Kearney, who is selling the six commercial properties either in individual lots or as “the entire”.