Q3 sees take-up of over one mil­lion square feet of in­dus­trial space

Irish Independent - Business Week - - TECHNOLOGY - Ron­ald Quin­lan

Over one mil­lion square feet of in­dus­trial space was taken up across 36 deals in the three months to the end of Septem­ber, ac­cord­ing to the lat­est re­port on the sec­tor from JLL.

The fig­ure 99,875 sq m (1,075,037 sq ft) rep­re­sents an in­crease of 92pc on the take-up for the se­cond quar­ter of 52,095 sq m (560,754 sq ft). The up­lift was largely ac­counted for by a num­ber of large leas­ing deals which were ex­e­cuted in the pe­riod. The top five deals rep­re­sented 58pc of to­tal take-up in Q3.

While over­all take-up was dom­i­nated by smaller-sized deals with 47pc of trans­ac­tions in­volv­ing spa­ces of less than 929 sq m (10,000 sq ft), deal size con­tin­ues to grow. Some 28pc of deals in the third quar­ter were for spa­ces of be­tween 929 sq m (10,000 sq ft) and 2,787 sq m (30,000 sq ft). The av­er­age deal size in Q3 was 2,774 sq m (29,862 sq ft), more than twice the level in the same pe­riod in 2017 1,495 sq m (16,089 sq ft). The largest deal in the pe­riod was a 20,425 sq m (219,853 sq ft) sale at Lufthansa, Naas Road. This was fol­lowed by the largest let­ting to have taken place in Dublin this year, in which joint agents Wil­liam Har­vey and Sav­ills se­cured Sonas Bath­rooms as ten­ants for the 12,494 sq m (134,484 sq ft), Unit 103 North­west Busi­ness Park, Bal­ly­coolin at an an­nual rent of €1.1m.

Com­ment­ing on the per­for­mance of the sec­tor, Nigel Healy, di­rec­tor at JLL’s in­dus­trial divi­sion, says: “We are start­ing to see the un­cer­tainty of Brexit have an in­flu­ence on the mar­ket. Oc­cu­piers are ex­er­cis­ing cau­tion in mak­ing de­ci­sions with re­gards to ex­pan­sion or sign­ing long-term leases un­til there is greater clar­ity sur­round­ing the struc­ture of fu­ture trade re­la­tions. That said, many oc­cu­piers are con­scious that they may need sub­stan­tial ad­di­tional ware­hous­ing for stock in Ire­land by next year but de­ci­sions are be­ing de­layed.”

Ni­amh Man­ning, re­search an­a­lyst with JLL, adds: “Year-to-date take-up has now reached 2.3m sq ft. We are fore­cast­ing for year-end vol­umes to sur­pass the level achieved in 2017 and to be in the re­gion of 2.9m sq ft, in line with the mar­ket per­for­mances of 2013 and 2014.”

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