Dublin Office Market On Target For Another Bumper Year
October 6th, 2018 – Property consultants CBRE Ireland have today released figures for the volume of office lettings signed in Dublin during the first nine months of 2018, which shows that the market is on target for another strong year, after 2017 beat all previous records. According to CBRE Ireland, more than 56,000m2 of office lettings in 80 individual transactions signed during Q3 2018 alone. 62% of office leasing activity in Dublin in Q3 occurred in the city centre region.
In total, more than 220,000m2 of office leasing activity has been signed in Dublin in the year to the end of September with a further 200,000m2 of office accommodation in the capital reserved at the end of the quarter, which will boost take-up in Q4 and subsequent quarters.
The first two quarters of 2018 saw strong volumes of leasing activity being recorded in the capital and this momentum carried into Q3 although unlike the previous two quarters there were no large transactions extending to more than 9,290m2 (100,000 sq. ft.) signed in the last three-month period. Nevertheless, there is currently more than 200,000m2 of office accommodation reserved and demand is running at more than three times that level, which points to a very strong Q4 and continued momentum into 2019. Interestingly, more than a third of take-up in Dublin in the year-to-date has comprised pre-lettings, which gives comfort to developers of new schemes that are being developed on a speculative basis.
According to the CBRE analysis, lettings to tenants in the computers/high-tech sector accounted for 34% of take-up in the capital in Q3 2018 and more than 40% of leasing activity in the year-to-date.
Prime office rents in Dublin city centre have now plateaued at €700 per square metre while rents in the south suburbs of the city which currently stand at approximately €306.66 per square metre are expected to increase over the coming months.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
CBRE U.C., (CBRE Ireland) registered in Ireland, no. 316570. PSRA Licence No. 001528 is the country’s largest commercial real estate services company with offices in Dublin and Cork. Currently employing over 135 employees, we work with occupiers, investors and developers of office, industrial and logistic, retail, hotel and healthcare property, providing strategic advice and execution for property sales and leasing; tenant representation, corporate services; property and project management; appraisal and valuation; development services; investment management and debt advisory; business rates and compulsory purchase and research and consulting. Please visit our website at www.cbre.ie