Christmas trade provides shopping centre/retail park landlords and tenants opportunities to improve their balance sheet. For tenants the Christmas rush determines if it was a good year or not. For landlords, the leverage of Christmas trade can force the most obstinate tenant to play ball on arrears payments. We recommend retail landlords who have indulged poor performing tenants over a number of years to take stock. Taking stock of rent arrears balances and whether a tenant can actually pay down their arrears. The most effective, least costly and quickest way to get paid rent arrears is to demand payment of all arrears formally and if there is no response or a tepid one then re-enter the premises. Re-entry is technical so hire the correct legal and technical team who are experienced in this area. Re-entry almost always triggers an injunction application by the tenant to reverse the re-entry. Your legal team need to know what they are doing or you may have egg on your face. Injunctions create a fruitful atmosphere for negotiations. Negotiations may result in the tenant surrendering their lease, renouncing any rights, entering a licence and paying a lump sum towards the arrears. No tenant wants to miss out on Christmas trade. No landlord should be taken for a soft touch.
CBRE Research "Ireland Retail MarketView Q3 2016" Pace of retail sales growth easing over recent mths following strong growth early in 2016 Volume of Irish retail sales for all businesses fell by -0.2% in Sept but increased by 3.4% YTD Consumer sentiment volatility reflective of growing uncertainties over recent mths Most significant growth in sales YTD experienced in electrical gds, motor, household equip & textiles, clothing & footwear Retail occupier activity remains strong regardless with domestic & int. retailers actively looking for premises Prime Zone A rents on Dublin’s Grafton St. now @ €6,300psm pa Henry St. Prime Zone A rents now @ €4,500psm pa - an increase of 29% YOY Occupancy rates improved on many High Sts. in the last 6 mth period with Athlone improving most since Q1 Prime High St. retail yields stable @ 3.25%