Healthy Start To 2019 For Dublin’s Industrial & Logistics Sector
April 10th, 2019 - Property consultants CBRE Ireland have today released figures for the volume of transactional activity achieved in the Dublin industrial & logistics sector during the first quarter of 2019. According to CBRE, 95,623m2 of take-up was recorded in the Dublin industrial & logistics market during the first quarter of 2019, up 1% on what in itself was a very strong quarter in Q4 2018.
There were 33 individual industrial transactions signed in Dublin in Q1 2019. 66% of the total volume of industrial take-up recorded in Dublin in Q1 2019 comprised lettings (24 transactions) with the remaining 9 of the 33 transactions signed in the period comprising sales”.
According to CBRE, prime industrial rents in the capital remained stable quarter-on-quarter, standing at €106 per square metre (€9.85 per sq. ft.) at the end of Q1 2019. Prime rents are expected to rise by approximately 6.5% by year-end 2019.
Transactional activity in the industrial sector during Q1 2019 was primarily focused on the Dublin South West (N7) corridor, which accounted for 33% of all sales and lettings completed in the Dublin industrial & logistics sector in Q1. Meanwhile, 31% of industrial take-up in the first quarter of the year occurred along the Dublin North (M2) corridor. 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.
The largest majority (41%) of transactional activity in this sector in the last three-month period comprised transactions that extended to more than 9,290m2 (100,000 sq. ft.) in size, while a further 20% of industrial take-up in the capital in Q1 comprised transactions that extended to between 1,858m2 and 4,645m2 (20,000 - 50,000 sq. ft.). Meanwhile, 13% of Q1 take-up comprised transactions that extended to 4,645m2 and 9,290m2 (50,000 – 100,000 sq. ft.).
The overall volume of demand in the industrial and logistics sector rose quarter-on-quarter as a result of several new requirements emerging in recent months. In total, there was demand for more than 118,000m2 of industrial accommodation prevailing at the end of Q1 2019.
Appetite for good industrial investment opportunities remains strong, buoyed to some extent by further rental growth expectations in this sector. However, although there was almost €600 million invested in Irish income-producing assets with a value of more than €1 million in Ireland during Q1 2019, there were no industrial investments of more than €1 million completed in the Irish market during the quarter
According to CBRE’s research, prime industrial yields in the capital remained steady at 5.1% at the end of Q1 2019 and likely to trend stronger in the year.
Read the full Q1 2019 Industrial & Logistics Marketview here.
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 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 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 150 employees, we work with occupiers, investors and developers of office, industrial and logistics, 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