SOME good news for Ireland and its high streets.
There has been a sharp fall in vacancy rates on key high streets across the country, with a wave of new tenants.
According to CBRE Ireland’s latest Retail Market 2025 report, the shift in demand is increasingly driven by experience-led retail, with food, beverage, leisure and wellness leading the charge.
In Dublin, a string of high-profile leasing deals has reshaped the city centre.
Gloria by Big Mamma signed a 20-year lease for a prime site on Westmoreland Street, while Mowgli, the British-based Indian street food chain, made its Irish debut by taking 302 square metres on South Great George’s Street.
Mark Moriarty Studio is preparing to open a chef’s table and test kitchen in Wilton Park, and The Ivy Asia will soon open its first Irish location on Dawson Street under a 25-year lease.
Other popular F&B and lifestyle brands such as Lina Stores and Joe & the Juice are actively seeking space in the city.
Once plagued by post-pandemic vacancies, Grafton Street and Henry Street now boast some of the lowest vacancy rates in recent memory, 4.4% and 6.4%, respectively.
This rebound has attracted a new generation of international and domestic retailers.
Lovisa has moved into 11 Grafton Street, Arket has set up shop at Grafton Place, and brands like Normal, Accessorise, and Dylan Oaks have all secured central locations.
Bernadine Hogan, Head of Retail at CBRE, said the surge in activity reflects a market that is both resilient and adaptable.
"The volume and quality of recent leasing activity reflect a sector that is evolving in line with consumer expectations,” she added.
While high streets and shopping centres are seeing a revival, the same cannot be said for retail parks.
No new standalone retail parks have been delivered in recent years.
According to the report, construction costs averaging €4,725 per square metre and capital values at just €3,844 have made new projects economically unfeasible.
The report calls on policymakers to urgently address this issue, particularly as housing delivery ramps up in regional areas.
Shopping centres, by contrast, have maintained steady leasing activity throughout 2025.
Dundrum Town Centre saw Pandora take over 200 square metres, while Zara expanded its footprint by 40% to more than 3,500 square metres.
Pull&Bear tripled its store size to nearly 800 square metres, and JD Sports reopened an expanded 2,000 square metre location.
Musashi and Wingstop recently signed deals at Liffey Valley, which also achieved a prestigious BREEAM ‘Outstanding’ rating.
The Blanchardstown Centre has also welcomed a variety of new tenants, including Specsavers, Kiko, The Fragrance Shop and Umai.
Ireland’s growing population is another driving force behind retail expansion.
With recent migration data showing a population increase of 78,000 in the past year, bringing the total to 5.46 million, demand for various forms of retail is rising
Lidl Ireland now holds 14.2% of the grocery market, up from 13.5% the previous year, and continues to expand aggressively.
Its new Net Zero Energy store in Maynooth represents a national first and underscores the retailer’s investment in sustainability and scale.
Despite retail being one of Ireland’s largest employers, with over 361,000 people working in the sector, contributing 16% of the national workforce and 12% of GDP, CBRE argues that it remains under-represented in policy discussions.
The report renews calls for the government to honour pre-election commitments to reduce VAT for food-led hospitality businesses, which face growing costs.
CBRE is also urging policymakers to address structural barriers to retail park development and to support infrastructure growth alongside housing.
Investor sentiment remains good, illustrated by the recent sale of Jervis Street Shopping Centre.
The €115 million deal, won by international investment firm Pradera, came in just 4% below the guide price and marks the company’s first entry into the Irish market.
The competitive bidding reflects continued belief in the long-term strength of Irish retail.
Colin Richardson, Director at CBRE, emphasised the importance of aligning planning policy with demographic shifts:
“As Ireland’s population continues to grow, particularly in regional areas, it’s essential that planning policy supports the delivery of retail infrastructure. The current viability gap in retail park development is a real challenge, and unless addressed, it risks leaving communities underserved.”
