DUBLIN INDUSTRIAL TAKE-UP GREW BY 29% IN 2010
CB RICHARD ELLIS DUBLIN INDUSTRIAL MARKET VIEW Q4 2010
9 February 2011 – Property consultants CB Richard Ellis today released their Dublin Industrial Market View Q4 2010, which details growth on both an annual and quarterly basis in the Dublin industrial lettings and sales market. Lettings and sales of industrial property combined achieved a quarterly take-up of 54,767m2 in Q4 2010, representing a 35% increase on the activity recorded in Q3 and an increase of 2% over the same quarter of the previous year. This quarterly take-up brings the 2010 total to 172,621m2, representing a growth in Dublin industrial take-up of 29% over the previous year.
Please see the Dublin Industrial Marketview report at the pdf link further below.
Sales accounted for a much larger proportion (43%) of overall take-up than in recent quarters due to the sale of the former Tesco facility, extending to 22,539m2 at Greenhills Industrial Estate, Dublin 24. There were 23 lettings signed in Dublin during Q4 2010 totalling 31,447m2. Excluding sales, the Dublin North City district accounted for 37% of industrial take-up, followed by the Dublin South West (N7) corridor with 24% of take-up.
Demand, as measured by the total industrial space requirements being actively sought in the market in a quarter, fell between Q3 and the end of Q4. Total requirements stood at just less than 57,000m2 in Q4, down from approximately 90,000m2 in Q3. After several quarters of stability in terms of prime rental values, prime quoting rents in the industrial sector experienced downward pressure in Q4 2010 and fell to €76 per square metre, while in secondary locations deals are being completed at rental levels far lower than the prime headline levels.
According to Garrett McClean, Director of Industrial Agency at CB Richard Ellis, Ireland “2010 was a mixed year for Dublin industrial. While an impressive level of take-up was achieved during the last 12 months (172,621m2 ) and represents an improvement on the previous year, many of the transactions comprise short-term lettings. The market saw increased downward pressure on rents at the end of 2010 and there remains a wide margin between rental levels earned for prime industrial space and rents agreed in secondary buildings and locations. The focus on this sector seems to be towards smaller lettings on short, flexible leases and we expect this trend to continue through 2011. ”
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Director, Industrial Agency
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