Does The Shopping Center Economic Model Work?

A pertinent question for Ireland Inc.

One of the pinsters pointed out on a separate thread that the proposed Gorey shopping centre will cost €57,000 for every man, woman and child living in Gorey.

That’s a lot of visits to the pound shop to recoup it.

Jaysus. If you had the land you could build a second gaff for every household in Gorey with 57k per person :open_mouth:

Here you go, with more bad news for the developers from alanp:

That’s 63k for everyone.

(Edited to remove really bad maths - now I know why accountants use calculators and why their sums are always wrong).

Those numbers are mind boggling. Whos financing these time bombs?

This has to be the definition of insanity. Did the Bray/Greystones developers do any research? Dundrum has a lock on the high-end specialist retailers. For 2billion and 850 million you could build whole new cities. This is insane?

There is a certain ‘if you build it they will come’ attitude attached to these decisions. The Empire State Building was given the nickname ‘The Empty State Building’ in the 30’s. :confused:

And yet think how much of a Metro Line ( Not going to the Airport ! ) you could build for this kind of money; then you’d be milking it for the next 50 years.

Excellent point - there is masses of scope for commercial investment in ‘public’ utilities - green power generation, transport, hospitals, schools, leisure facilities (pools and sports halls) with a guaranteed state return.

Yes, its PPR (which seems to be a bad word), but it can work. Look at the M50 toll bridge!

Instead our bleading developers want to build shops.

Could some of that be down to planning practices that make it easier to get permission for SCs than to get involved in infrastructure of the type above? Also, that money is not coming from some developers’ bank AC, it’s coming from various investors/backers/financial institutions who perhaps don’t want to get involved in such things.

Yes on the planning - remember that the local authority gives the permission in the first instance, and the objective is to increase revenue flows to it in the form of Rates. SC’s pay a lot of rates.

Well, it seems fairly obvious they didn’t do the obvious research of walking around Greystones. If they had, they’d have seen the Meridian Centre, a small, reasonably attractive retail development built off Greystones main street about (IIRC) 7-8years ago. I’ve never seen it fully occupied and it currently has 2 units to let (about 10% of the total space, I reckon. This would be among the highest occupancy I’ve seen in it).

Indeed. My little madam has introduced me to the joys of build-a-bear, where you assemble your own teddy bear, and dress him and cloth him, and create an instant heirloom (I hope). I never realised it was possible to spend €75 on a teddy bear. But they won’t be moving out to Charlesland/Bray.

How Las Vegas transport gamble turned into a one-track ride to ruin

They did it all with private investment. Not enough people buying a ticket to ride though.

I presume it’s possible to run at a profit if you can buy the infrastructure from the creditors for a fraction of the real cost.

The LUAS is only “profitable” becuase there is no need for RPA/Veolia to pay towards the capital cost.

The DART was profitable until the govt lumbered all of its construction costs onto CIE.

How about the new chq place in the IFSC? Place is always dead apart from the two Coffee franchises (weekdays only of course). There must be a few people sweating on the rent in that place.