Foreign multinationals dominate Q1 industrial letting & sales activity
Dublin, April 11th 2011 – Indigenous occupiers continue to postpone moves - According to the latest Dublin Industrial Market View report for Q1 2012 released by property consultants CBRE today, industrial take-up activity of just less than 33,000 square metres was signed in Dublin in the last three month period. Although this represents a 16% decline on the level of transactional activity achieved in the same quarter last year, it is on par with that achieved in Q4 2011.
Please see pdf link below to download a full copy of the Dublin Industrial Marketview Q1 2012.
As has been the case over the last number of quarters the majority of activity achieved in Q1 in the industrial sector comprised leasing deals, as funding continues to be a problem for potential purchasers. Indeed, only a handful of sales were completed in the quarter accounting for just 32% of overall activity.
According to Garrett McClean, Director of the Industrial agency team at CBRE Dublin “The volatile economic situation continues to alter the composition of the industrial sector. Activity is still occurring. However, it is now primarily driven by multinational organisations and in most instances is under flexible lease terms. Indigenous occupiers continue to postpone relocation or expansion plans due to the difficulties in obtaining credit and the uncertain economic climate. The majority of deals in progress as well as new requirements comprise overseas companies seeking large modern industrial units, such as this quarter’s largest letting to the international logistics operator DB Schenker at Furry Park Industrial Estate on the N1/M1 corridor”.
The N1/M1 corridor accounted for 28% of the industrial sales and leasing activity in Dublin in Q1 2012. However, according to the research by CBRE, it was the Dublin South West (N7) corridor which was again the preferred location of occupiers in the quarter. 9 individual lettings and 3 sales were signed in this corridor accounting for 44% of the Q1 activity in the sector, including two large lettings (each of over 3,000 square metres in size) to one occupier in the Westgate Business Park.
According to CBRE, prime quoting industrial rents in the capital at the end of Q1 2012 stand at approximately €60 per square metre, which represents a 54% decline on prime rents achieved at the peak of the market in this sector. Garrett McClean believes that prime industrial rents should now stabilise at this level over the medium term as a shortage of prime modern units in suitable locations will ultimately emerge. He said that encouraging export and industrial production levels over recent months are positive indicators for the sector going forward.
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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 firm (in terms of 2011 revenue). The Company has approximately 34,000 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.