Cork retail market in a period of growth as vacancy rates drop

Patrick Street has welcomed an impressive roster of new retailers since 2021, including The North Face, Dune Shoes, Carolls Gifts, Flannels, JD Sports, Mango, Krispy Kreme, and more recently Austen & Blake and Lovisa. 

Due to open in early 2025 is Seasalt in the former French Connection building and a new US retailer is set to open in the former Dorothy Perkins/Evans unit in the summer of 2025. We also understand a Spanish brand is reportedly taking a significant 40,000 square feet in a former Debenhams store, which will see the occupancy rate go from 75% to almost 95%, which indicates the importance of having this anchor store occupied, in the city’s prime retail street.

Opera Lane now has full occupancy first time since Q4 2019, with Victoria’s Secret, Bath & Body Works opening last week and Mountain Warehouse due to open early 2025.

Critics may claim that city centre retail is in decline, but the evidence suggests otherwise. The variety and number of new entrants has been highly encouraging, with further inquiries from national and international retailers keen to establish a foothold in the city. However, Cork faces some suitability challenges: many existing buildings don't meet retailer’s requirements. As with any historical city, traditional stores are inherently too small for today's retailers.

The shift toward larger retail spaces is driven by the need to provide engaging, experiential environments that attract and retain customers. Brands aim to deliver unique in-store experiences that reflect their identity and values, often requiring more extensive floor space than traditional Cork city centre retail units offer.

This evolution in retail strategy highlights the importance of developing adaptable retail spaces in Cork that can meet the changing needs of both brands and consumers, ensuring the city remains competitive in attracting leading international retailers.

The city’s most prominent vacancy—the former Debenhams site—remains the key question. While there are indications that it is under offer, all of Cork is watching closely, hoping for decisive action in 2025. The successful redevelopment of such a key site could serve as a catalyst for further growth.

The redevelopment of the Penneys store on Patrick Street will also provide a much-needed boost to the area, particularly to the adjacent Cook Street, which has experienced stagnation due to delays in the planning process.

The retail market in Cork has evolved into a tenant-friendly environment, with flexibility playing a key role in lease negotiations. Typical leases now range from five to ten years, often with break clauses at years three and six. Turnover-based rent structures are also gaining traction, allowing retailers to mitigate risk. These arrangements provide a base rent with a performance-based top-up, ensuring landlords benefit when retailers thrive while offering protection during challenging times. This model is particularly attractive to risk-averse tenants, though established brands with greater market confidence may still prefer traditional fixed rents. Landlords are adapting to this but it not without its challenges for funding and investment sales.

To enhance the vibrancy of Cork’s retail landscape, it would be great to see more of an eclectic retail mix to include boutiques, vintage stores, and alternative outlets would be welcome additions. Although this is challenging for small businesses as they face significant set up costs such as shopfitting costs, rates, utilities, and staffing challenges. The reality is that some of the vacant stock is not suitable to be let without significant investment. This ultimately lies with the landlord, but it would be good to see further collaboration with the City Council with some renovation grant or painting grant or a reduction in commercial rates.

Despite these challenges, Cork’s retail market remains a source of optimism. 

While issues like antisocial behaviour have disappointed many, it’s essential to remember that we, as stakeholders in our city, have the power to shape its future. Substantial efforts have been made to improve the city’s retail offerings — a process that requires patience to yield results. With positive momentum now underway, it is crucial to maintain and build upon this progress. The retail market, much like fashion, operates in cycles, and Cork is clearly emerging from a low point and entering a period of growth.

Our city offers a vibrant and diverse retail experience tailored to a wide range of preferences. Shopping here is more than just a transaction — it’s an opportunity to turn everyday tasks into enjoyable social outings, thanks to the combination of unique stores and exceptional dining options.

A key advantage of in-store shopping is instant gratification: customers can see, touch, and immediately take home their purchases, a distinct benefit over online alternatives. The ability to try and test products in person — especially for clothing, beauty items, and high-value goods — not only adds value but also builds confidence in purchasing decisions.

Sustainability is another draw, with reduced packaging and the chance to support local businesses appealing to eco-conscious consumers. This focus aligns with a growing desire for responsible shopping practices, making the city a compelling choice for shoppers.

By blending experiential, practical, and sustainable elements, our city continues to attract a dynamic and expanding demographic.

Cork’s long-term prospects are encouraging. As Europe’s fastest-growing city over the next two decades, its population in the metropolitan area is expected to nearly triple, reaching close to one million by 2050. This growth is likely to increase retail demand, offering opportunities for investors to tap into a thriving market.

One of the key pieces of the puzzle for our city’s success, which I have not addressed in this article, is the challenges facing the food and beverage industry. This topic merits a dedicated discussion, which will be explored in detail with Irish Examiner readers, in early 2025.

Lia Dennehy is an Associate, Commercial Agency, Savills, Cork