Dublin industrial leasing activity reaches five year high in 2012.
A number of large transactions signed throughout Dublin over Q4 2012 to reflect peak annual levels of take-up
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Dublin, January 22nd 2013 – The latest Dublin Industrial Market View report for Q4 2012 released by property consultants CBRE today, shows that following another steady quarter of industrial transactions completing over the last three months, the level of activity in the sector over 2012 has been the highest achieved in Dublin since 2007. This quarter’s take-up of over 43,000m2 of accommodation let or sold in Dublin has resulted in a total transaction level of over 200,000m2 completing in Dublin over 2012 – an increase of 42% on the level of activity achieved in 2011.
Almost 80% of the take-up in the industrial sector in Q4 2012 comprised lettings as tenants continued to favour flexibility in light of the macroeconomic environment. That said, a number of occupiers opted instead to purchase premises. In total, seven sale transactions completed during the quarter extending to over 9,000m2 of accommodation.
Purchasers favoured the Dublin South West (N7) corridor, as 40% of sales signed in Q4 2012 were located in schemes along this corridor, however due to the weight of leasing activity that took place along the Dublin North East (N1/M1) corridor, it was this location which accounted for the majority of activity (42%) that signed in Dublin in Q4 2012. Over the year as a whole, the Dublin South West (N7) corridor accounted for 46% of all deals that signed in the sector, while the North East (N1/M1) corridor accounted for a further 18% of annual activity.
Reflecting on the steady level of demand for industrial accommodation that was maintained throughout 2012, Garrett Mc Clean, Director of the Industrial agency at CBRE Dublin notes that “New entrants to the industrial market continue to be attracted by Ireland’s corporate tax rate and emerging reputation as a hub for cloud computing and data storage. A number of unfulfilled requirements for accommodation will now be carried in to 2013 which has started the year with the momentum that 2012 ended on”.
Prime industrial rents remained stable at €60 per square metre over 2012, while secondary industrial rents stood at €37 per square metre by year-end 2012. The report notes that secondary rents will likely remain under some downward pressure going in to 2013 considering the volume of secondary accommodation being marketed throughout the capital.
There was just one industrial investment (over €1 million in value) signed during Q4 2012 which was the sale of a facility at Primeside Business Park, Ballycoolin, Dublin 15 for €1.5 million. This brought the total investment spend in the sector in Dublin over 2012 to €31.4 million.
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