Retail parks have emerged as the most in-demand retail subsector in 2025. In 2024, they recorded a full-year turnover of more than €140 million – only around 14 per cent of the wider retail investment market, a sector dominated that year by the €572 million sale of Blanchardstown Shopping Centre. But the momentum behind retail parks has accelerated dramatically in 2025.
This year, total turnover in the retail-park sector is expected to exceed €400 million, representing more than half of all anticipated retail investment activity and an extraordinary 17 per cent of the total capital markets transactions for 2025 (assuming the whole market reaches approximately €2.3 billion).
Approximately 13 retail parks changed hands this year, and the surge in activity transformed the competitive landscape. One participant in particular transitioned from a “new entrant” with just three parks at the end of 2023 to outright market leader by the close of 2025.
That investor is Realty Income, the US-based S&P 500 Reit with a portfolio of roughly 15,500 properties worldwide and a market capitalisation above $56 billion (€48.2 billion). The company now controls 16 retail parks in Ireland, making it a key player in the sector and accounting for more than one-fifth of the entire market by number of parks. However, it has yet to secure one of the major M50 retail parks which rank at the top of the Irish market in terms of rental value and trading performance.
RM Block
Realty’s rapid expansion was driven primarily by the landmark acquisition of the €220 million Oaktree Retail Park portfolio in early 2025. That deal comprised eight parks – including four Dublin-centric schemes in Naas, Navan, Drogheda and Bray – alongside big regional parks in Waterford, Sligo, Galway and Limerick. Realty Income followed this with the Q3 purchase of the Trinity Collection for €123 million. This M&G owned portfolio of three assets consisting of Belgard Retail Park and parks in Clonmel and Drogheda.
The blended yield of approximately 6.8 per cent for these transactions was heavily influenced by the Dublin asset and the inclusion of a stand-alone grocery-anchored component in Drogheda (a new Tesco). Realty are expected to conclude the year with the off-market acquisition of Carrick-on-Shannon retail park for more than €15 million.
Why retail parks are in favour
The sector’s rise to prominence is underpinned by strong fundamentals. Most notably – and in sharp contrast to the office market – retail parks benefit from a relatively stable supply-demand balance. As a result, rental growth across the sector has been robust. This trend is expected to continue into 2026, although with most schemes now at or near full occupancy, the creation of new rental evidence may be the key constraint on further growth next year.
At a time when capital expenditure requirements – and particularly ESG-related retrofitting – top the list of investor concerns, retail parks stand out for their comparatively low landlord CapEx exposure. Many parks can meaningfully enhance their environmental, social and governance (ESG) credentials at a modest cost. Features such as rooftop PV installation, rainwater-harvesting systems and EV-charging infrastructure are increasingly common and align well with responsible investment frameworks.
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This favourable profile has driven yields sharply downward. Regional retail park yields, which typically traded in the 8–9 per cent range at the start of 2024, have compressed by more than 100 basis points and now sit in the 7–8 per cent bracket. Dublin-centric assets are trading deeper still, firmly in the mid-6 per cent range.
We expect the popularity of the sector to continue into 2026 and beyond, limited only by the supply of product. In this regard we expect at least two major Dublin assets to trade in 2026 with a number of regional owners also understood to be preparing assets for sale.
Rod Nowlan is an executive director at Bannon
