Tech dominates as Dublin office market at busiest since 2007
A YEAR’S take-up of office space across Dublin has occurred in the first nine months of the year, new research has shown.
According to the latest quarterly figures from commercial property consultants CBRE there were four lettings signed in excess of 4,645 square metres (sq m) in Dublin during the third quarter of the year.
The take up in office space in the capital during the threemonth period reached 82,736 sq m, which marks the busiest third quarter for commercial property since 2007.
So far this year the Dublin market has seen 172,377 sq m worth of commercial property deals, putting it just under the annual average for the last ten years.
CBRE executive director Marie Hunt said the number of enquiries about Dublin properties has increased since the Brexit referendum on June 23.
“Most of these enquiries are still quite preliminary scoping exercises with any increase in transactional activity emanating purely as a result of Brexit unlikely to materialise in the short term.
“Potential occupiers are comforted by visibility on future office supply in the capital considering the number of office schemes that are currently under construction or at various stages of the planning process which can be delivered if required,” Ms Hunt said.
The tech sector accounted for 33pc of all transactions signed in Dublin during the quarter and have taken up 29pc of all deals so far this year.
Elsewhere financial service tenants took 8pc of the deals signed in the three months from July to September and 14pc of deals in the year to date.
Finally business services firm racked up a quarter of leasing activity during the third quarter and 17pc in the first nine months of the year.
Six of the 10 largest deals were done in Dublin during the quarter with four of the top ten being relocations, according to the data. Vacancy rates in the capital continued to slide during the quarter also.
Prime rents in the city centre are now in the order of €645 per sq m, up from €546 per sq m from the same period last year.
The increased interest from overseas firms will come as welcome news for developers building office space in the city.
Last week Sean Mulryan’s Ballymore unveiled a major new development along Dublin’s docklands aimed at attracting high-profile jobs and companies to the area.
The multi-million euro development will see the construction of five new office blocks in North Wall Quay as well the building of 273 new luxury apartments.
The National Treasury Management Agency will be the first tenants of the project dubbed Dublin Landings.
Meanwhile property giant Kennedy Wilson is pitching Dublin as a ‘back-up’ plan to UK banks.