Solid demand in Q4 for industrial and logistics space

THERE was a solid uptake of industrial and logistics space around Dublin during the final quarter of 2020 despite Brexit uncertainty and the Covid pandemic, according to a new report from Savills.

But demand coupled with a lack of speculatively-built properties has resulted in the vacancy rate plunging to an all-time low of just 1.8pc.

Savills points out in a report this morning that 35pc of the current vacant stock is more than 30 years old.

The property firm said that 87,318 sq m of industrial and logistics space was taken up in the final quarter of 2020, which was a 5pc increase on the last three months of 2019.

There were 47 transactions in the last quarter, 68pc of which were lettings totalling 67,690 sq m, it noted.

The transactions in the last quarter of 2020 brought the total take-up of industrial and logistics space in Dublin last year to 276,536 sq m.

That was 7pc lower than in 2019, but 5.5pc above the 10-year average, according to Savills.

An agreement for a lease on a near 61,000 sq m facility at Baldonnel Business Park was signed in the last quarter of 2020, which will flatter this year’s take-up figures when the deal is completed and the premises is occupied.

Gavin Butler, director of industrial and logistics at Savills, said take-up during 2020 had been hampered by the extremely low vacancy rate.

Among those snapping up space here were large UK food and drink companies that were stockpiling goods in Ireland prior to the end of the Brexit transition period.

Industry sources also said that companies seeking warehousing in Dublin were sometimes having to settle for space well outside the capital.

Savills said that only one new build was delivered to the Dublin market in the final quarter of 2020 – a 9,286 sq m facility that was built by Park Developments and which is pre-let on a long-term lease.

Savills noted that 91pc of all new builds since 2016 have been let prior to completion, reflecting what it said was the lack of supply of good quality, second-hand space coming to the market and a preference amongst occupiers for new properties despite higher rents and longer lease terms.

There are currently nine buildings totalling 93,570 sq m under construction and due for completion this year across six developments in Dublin.

Three of those buildings have already been committed to clients.

‘There were 47 transactions in the last quarter’