Good Take-Up Recorded In The Dublin Industrial & Logistics Sector In Q1
April 13th, 2018 - Property consultants CBRE Ireland have today released figures for the volume of leasing and sales activity in the industrial and logistics sector in Dublin in the first quarter of 2018, which shows that 56 transactions signed in the capital in the three months to the end of March.
Almost 72,000m2 of take-up was recorded in the Dublin industrial & logistics market during the first quarter of 2018. Although this is down slightly on the volume of take-up recorded last quarter, it is up 41% on the volume of activity achieved in this sector in the same quarter last year. Occupier demand remains strong in this sector.
According to CBRE Research, 58% of the total volume of industrial take-up recorded in Dublin in Q1 2018 comprised lettings (35 transactions) with 21 of the 60 transactions signed in the period comprising sales. Prime industrial rents rose quarter-on-quarter and now stand at €102.20 per square metre (€9.50 per sq. ft.).
Transactional activity in the industrial sector during Q1 2018 was primarily focused on the Dublin South West (N7) corridor, which accounted for 36% of all sales and lettings completed in Dublin in the three-month period. A further 27% of the industrial accommodation that either let or sold in Dublin during Q1 was located along the Dublin North East (M1) corridor while a further 10% was located along the Dublin North West (N3) corridor.
Appetite for good industrial investment opportunities remains strong, buoyed to some extent by rental growth expectations in this sector. However, supply remains constrained, particularly for larger lot sizes. Indeed, according to CBRE, of the almost €930 million invested in Irish income-producing assets with a value of more than €1 million in Ireland during Q1 2018, only 1% comprised industrial investments specifically which is frustrating for the many investors keen to invest in this sector.
Earlier this week, CBRE launched the 3rd annual edition of the CBRE Logistics & Supply Chain Confidence Index which is now available for download.
About CBRE Group, Inc.
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