Highest take-up on record in the Dublin Industrial sector in 2015
Dublin Industrial Marketview Q4 2015
Dublin, January 14th 2016 - According to the latest research from property consultants CBRE Ireland, following a bumper first nine months in which more than 310,000m2 of industrial take-up occurred in the Dublin market, a further 115,579m2 of take-up was recorded in Q4. As a result, take-up for 2015 in this sector reached a new record level. There were 68 individual industrial transactions signed in Dublin in Q4 2015 bringing the total number of transactions completed in the year to more than 200.
According to Marie Hunt, Head of Research at CBRE Ireland, almost half of the industrial transactions signed in the Dublin market during Q4 2015 comprised sales with the remainder comprising lettings.
Click here to download the full report | CBRE Ireland Dublin Industrial & Logistics Marketview Q4 2015
“For the year as a whole, sales accounted for 68% of transactional activity with several large transactions boosting take-up during the year. As a result of this bumper transactional activity, the supply of modern industrial and logistics accommodation in prime locations has fallen dramatically. Coupled with the fact that there is only one speculative scheme currently under construction in the capital, this will result in significant rental increases in this sector in 2016 and beyond. Prime rents rose to approximately €75 per square metre during Q4 2015 and we are expecting prime industrial rents in the capital to increase by as much as 25% this year”.
Transactional activity in the industrial sector during Q4 2015 was primarily focused on the Dublin South West (N7) corridor, which accounted for 31% of all sales and lettings completed in Dublin in the three month period. A further 22% of the industrial accommodation that either let or sold in Dublin during the quarter was located along the Dublin South West (N81) corridor while 18% of Q4 take-up occurred along the Dublin North East(N1/M1) corridor.
The majority (35%) of industrial take-up in the capital in Q4 2015 comprised transactions of between 4,645 and 9,290m2 (50,000 -100,000 sq. ft.) in size. A further 27% of take-up in Q4 extended to between 1,858 and 4,645m2 (20,000 -50,000 sq. ft.) in size while 8% of the quarters’ sales and leasing activity combined extended to more than 9,290m2 (100,000 sq. ft.) in size. For the year as a whole, more than a quarter of take-up comprised transactions of more than 9,290m2 (100,000 sq. ft.) in size, clearly demonstrating the fact that much of the boost in take-up experienced in 2015 was as a result of the number of large premises that transacted during the year. The likelihood is that take-up in 2016 will be made up of smaller transactions.
Jarlath Lynn from the industrial agency team at CBRE Ireland said, “Despite the volume of leasing and sales activity that has occurred in 2015 which saw many requirements fulfilled, demand remained consistent quarter-on-quarter with more than 63,000 square metres of demand prevailing at the end of Q4 2015. 66% of demand for industrial accommodation in Dublin at the end of Q4 2015 is focussed on the Dublin South West (N7) corridor. 38% of demand at year-end 2015 is focussed on premises extending to between 4,645 and 9,290m2 (50,000 -100,000 sq. ft.) in size while a further 30% of outstanding requirements were focussed on premises extending to between 1,858 and 4,645m2 (20,000 -50,000 sq. ft.)”.
Of the almost €3.5 billion invested in Irish income-producing assets with a value of more than €1 million in Ireland in 2015, only 2% comprised industrial investments specifically. Prime industrial yields in the capital are approximately 5.75% at the end of Q4 2015 according to CBRE, who earlier this week launched the 27th edition of their Outlook 2016 report containing their predictions for all sectors of the Irish commercial property market for 2016. www.cbreoutlook2016.com
About CBRE Group, Inc.
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 and investment firm (based on 2016 revenue). The company has more than 75,000 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.
In Ireland, with offices in Dublin and Belfast, CBRE is the country’s largest commercial real estate services company, now employing over 165 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, business rates and compulsory purchase, valuations and research. Please visit our website at www.cbre.ie or www.cbre.ie/ni.