Lack of New Projects in Cork

Maybe something to do with the fact that we are experiencing a very significant property bubble crash, a result of which is that our banks are massively in debt due to excessive lending to property developers, and that our government has decided to spend our hard earned tax on bailing out both the banks and property developers. Oh, and we have a housing and office inventory that could take years to fill.

It also has to do with lack of Government funding. New Civil Engineering projects like road and rail works are also depleted as well as HSE and OPW conservation projects. Its not just affecting property, its affecting all aspects of the construction industry.

The amount of survey tenders from local authority has also dropped off the side of a cliff, which would indicate a drop off in all infrastructural projects, such as watermains, sewage and urban renewal schemes.

I shudder to think that the minister for finance, for the last ten years, that got us into this terrible mess, is at the helm trying to get us out of it. I know I’m posting with the benefit of 20 20 hindsight, but the government could have held some money aside for infrastructural projects for when the property bubble eventually popped. The term for this is called “managing an economy”, which our bold leader completely failed us by not doing!

As a consequence, we will lose a lot of the skill base in Architectural, Engineering and Land Surveying offices that we all worked so hard to build up over the last 10 years.

It’s highly unlikely that you will see any large-scale development for at least the next 5 years. No bank in its right mind would touch Irish property development right now. It’s going to take a long time to stablise and a long time to restore its reputation.

Also, there is vast over-supply of retail and office space in the city at the moment. I can’t see much happening until it’s proven that the city can even support all of that space.

The Government is borrowing for day-to-day expenditure, so there’s very limited scope for any capital outlay on state projects that haven’t already been committed to.

there is loads of office space alright but is that older office space such as that on south mall? or do you think the over supply includes the newer generation stuff?

Unfortunately, it’s both. I have been scouting around for office space and the rents have fallen very dramatically. Also, there seems to be endless space available of all types old, new, big, small.

An agent I spoke to was saying what activity is there is largely churn i.e companies abandoning older office space and moving into new / refurbished office space, but leaving the old stuff unoccupied.

Also, new generation space that was overpriced compared to the current market is being moved out of in favour of better value new build / recent refurbs.

It’s a pretty gloomy market. It’s all about cost cutting.

On the commercial side of things, I strongly suspect what you will see, at least in the short term, is a movement of existing stores from older premises (shopping centres and on-street properties) to the new centres to avail of better facilities and more competitive rents. Many of them are tied into very high rents which, in this market, are probably very unrealistic.

While there may be some new entrants to the Cork market, many of the British chains (which tend to make up most of the retail new entrants here) are in dire trouble at the moment and neither have the finances nor the backing to expand right now.

On a positive note, it might mean that local businesses and more interesting chains i.e. non UK highstreet blandness get a foothold in Cork that they would not have been able to afford a few years ago.