Dublin Industrial Property Market Remains Stable
The Dublin industrial property market continues to perform strongly, regardless of wider economic concerns, according to research from CB Richard Ellis. Transactional activity in the industrial occupier market remains buoyant with approximately 60,000m2 of industrial accommodation being transacted in the Dublin market during the first quarter of 2008, 75% being lettings, according to their Q1 Dublin Industrial Market View publication.
During the first three months of 2008, approximately 45,500m2 of industrial accommodation was let in Dublin while approximately 14,500m2 of industrial sales were signed. The greatest proportion of transactions were concluded in Dublin South West (N7 Corridor). Research from CB Richard Ellis indicates that there is currently demand for almost 480,000m2 of industrial accommodation in the Dublin market. This equates to active demand for almost twice the average annual industrial take-up in the capital.
Prime industrial rents remain stable at approximately €130 per m2 while prime capital values remain unchanged compared to the last quarter. The value of prime industrial land in the Irish capital has also remained stable during the first quarter 2008. Rental growth on the Dublin industrial market has grown by an average of 2.6% per annum in recent years, driven to a large extent by a lack of supply of enough services land and a scarcity of modern facilities in core locations.
According to the Investment Property Databank, Irish industrial rents grew by 1.4% in 2007. While limited rental growth is expected in 2008, it is inevitable that total returns from the Irish industrial sector will decline from last year’s un-geared return of 9.7%. The industrial sector accounted for 49% of the €235 million of investment spend concluded in Ireland during the first quarter of 2008. Prime yields in the Dublin industrial market are currently standing at approximately 5.0%.
For Further Information please contact
Director of Research
CB Richard Ellis
1 Burlington Road
Tel + 353 1 6185543
Fax + 353 1 6682991
Mob + 353 87 2727115