Sunday, Sep 27, 2009

Fees slashed but shops still struggle and many have closed

Independent.ie: Retail rental market now close to collapse

The stark findings of a "strictly confidential report'' by Retail Excellence Ireland on the state of the Irish commercial property market reveals that the rental market for commercial property is in freefall.
The report claims the situation for retail outlets is now so bad that in 60 per cent of Ireland's major shopping centres landlords are voluntarily reducing rents by up to half.

Posted by devo @ 09:13 PM (1231 views)
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8 Comments

1. Not Long Now said...

"in 60 per cent of Ireland's major shopping centres landlords are voluntarily reducing rents by up to half".

Ah, this would be the hyperinflationary holocaust we keep hearing so much about, (but one where prices fall).

Sunday, September 27, 2009 09:50PM Report Comment
 

2. mark wadsworth said...

Well yeah. It's Ricardo's Law Of Rent - when things are going well, they benefit disproportionately, and when things are going badly, they suffer disproportionately. They can't expect much sympathy from me.

Sunday, September 27, 2009 09:59PM Report Comment
 

3. sneaker said...

And wouldn't you know, there is talk in Iceland and the Baltics (which are already recovering strongly) about joining the Euro.

Ireland can't fix its economy as it is a prisoner to the ECB.

My message to the citizens of Iceland and the Baltics is: if you don't want to end up like Ireland, don't do what Ireland did. Stay out of the Euro, for chrissakes!

Sunday, September 27, 2009 10:50PM Report Comment
 

4. quiet guy said...

"Labour Party TD Ciaran Lynch, who has tabled a Private Members Bill calling for an end to the current law on the topic, said that unless something was done jobs would be lost and some shopping centres could become derelict."

Put aside the Irish angle to this problem for a moment; if you suspect that part of the problem with some Western economies is that they are too heavily weighted towards consumption and borrowing versus production then what is the point of trying to preserve shopping centres? The Western world cannot spend its way out of debt.

Sunday, September 27, 2009 11:16PM Report Comment
 

5. crunchy said...

@ 3 "The Western world cannot spend its way out of debt."

Quiet guy, that sentence sums up the irony of our times very well. However it is not true in an immediate sense, just as it was not true

ten years ago. The Western world cannot spend it's way out of debt forever, or The Western world cannot spend it's way out of debt in this

form of monetary system, meaning that there may be yet another step to go akin to dropping the gold standard. A true form of virtue

money. Just as an artist has many more paintings in them so too is the creative scope of the money masters.


After all, what is money? Can we really define it. Pin it down. We used to be able to do this!

Monday, September 28, 2009 12:40AM Report Comment
 

6. crunchy said...

Oops! "A true form of virtual money."

Monday, September 28, 2009 12:46AM Report Comment
 

7. Chilli said...

Oh, don't start the gold ramble again!

Money backed by gold is a dinosaur of an idea.

The money supply needs to expand and contract in proportion to the real growth of the economy. Backing money with gold, pegs the supply of money to the supply of a mineral. And the value given to gold is completely arbitrary. Its just a metal. And often, very over valued.

Monday, September 28, 2009 10:35AM Report Comment
 

8. cynicalsoothsayer said...

@MW Interesting you mention that as Henry George in "Progress and Poverty" says that recessions and depressions are caused by speculative advances in land values:

http://www.econlib.org/library/YPDBooks/George/grgPP23.html#Book%20V,%20Chapter%201

Monday, September 28, 2009 12:15PM Report Comment
 

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