A number of large leasing transactions boosted take-up in the Dublin industrial market during Q2 201
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- 57,664m2 of sales and letting activity signed in the industrial sector in Dublin during Q2 2013
- Industrial take-up in Dublin the first half of 2013 up almost 20% on the same period last year
- Lettings accounted for 53% of industrial take-up in Dublin during Q2 2013 with 23 sales transactions extending to 30,362m2 signed in the quarter
- There were 21 sales of industrial buildings, extending to 27,302m2 completed during the three month period
- Prime industrial rents in the capital remained stable for the sixth consecutive quarter at €60 per square metre during Q2 2013
- No industrial investment transactions of over €1 million in value completed in Q2
- Prime industrial yields in the capital at approximately 8.75% at the mid-year point
Dublin, July 10th 2013 – Property consultants CBRE today released industrial take-up statistics for the second quarter of 2013 showing that over 57,000m2 of industrial sales and lettings were signed in Dublin in the second quarter of 2013. This brought total take-up in the Irish capital in the first six months of 2013 to almost 120,000m2 with a total of 78 individual industrial transactions signing in Dublin during the first six months of 2013 according to CBRE. This is 20% higher than the volume of industrial take-up in Dublin in the first half of 2012.
Activity in the industrial sector of the property market is largely dominated by a number of large transactions from a range of corporate occupiers including pharmaceutical companies, research and development companies, data centre operators and medical device manufacturers. Transactional activity in the industrial sector during Q2 2013 was primarily focused on the Dublin North East (N1/M1) corridor, which accounted for 35% of all sales and lettings completed in Dublin in the three month period. A further 27% of the industrial accommodation that either let or sold in Dublin during the quarter was located along the N7 corridor, while the Dublin West (N4) corridor accounted for a further 16% of industrial take-up in Q2 2013.
In contrast to the office sector where recent transactions have been relatively small, quite a lot of the transactions completed in the industrial sector during Q2 2013 were large. Transactions ranging between 4,645 and 9,290 square metres in size accounted for 44% of all industrial transactions signed in the capital during the quarter with 46% of industrial sales and 43% of industrial lettings in Q2 in this particular size bracket. The most significant transactions to sign in the Dublin industrial market during Q2 2013 include the letting of 8,012m2 at Fonthill Business Park in Dublin 22 and the sale of 7,277m2 at Clonshaugh Industrial Estate in Dublin 17. In one of the most significant industrial land sales for years, 38.5 acres near Dublin airport has recently been sold, demonstrating the trend of industrial occupiers purchasing land to develop bespoke facilities on a design and build basis.
Although two industrial investment transactions of more than €1 million in value signed in the Dublin market during the first quarter of 2013 there were no industrial investments of more than €1 million in value signed in Dublin in the second quarter of 2013. In total, only 1% of the €603 million of investment spend in the Irish market in the first half of 2013 comprised industrial properties. However, there has been a notable increase in demand from investors for prime industrial and logistics buildings over recent quarters and CBRE believe that prime industrial yields now stand at approximately 8.75% having hardened by a further 25 basis points over the most recent quarter.
According to Garrett McClean, Head of Industrial Agency at CBRE Ireland, “There has been continued activity in the industrial sector of the Dublin property market during the last three month period. In total, industrial take-up of some 57,644m2 was achieved in the capital during Q2 2013 with a fairly even split between sales and lettings recorded in the period. In total, 53% of industrial take-up achieved in the capital in Q2 2013 comprised leasing activity with 23 individual letting transactions signed in the period. There were 21 individual industrial property sales recorded in the three month period accounting for 47% of industrial take-up in the period.”
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2012 revenue). The Company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
In Ireland, with offices in Dublin and Belfast, CBRE is the country’s largest commercial real estate services company, now employing over 110 employees and offering a full range of property services including property sales and acquisitions, leasing and management, investment, corporate services, debt advisory, project management, consultancy, valuations and research. Please visit our website at www.cbre.ie or www.cbre.ie./ni