Industrial sector clearly impacted by economic climate according to CBRE
Lack of funding to facilitate purchasing of industrial units leading to greater prevalence of letting.
To download a PDF copy of the full CBRE|Industrial Marketview Q4 2011 please click on the link further below.
25th January 2012 | The Dublin office of CBRE today released their Dublin Industrial Market View Q4 2011, showing that take-up of 140,845m2 was achieved in the industrial sector in Dublin in 2011 compared with more than 170,000m2 of take-up in this sector of the market in the previous 12 month period, which they say clearly illustrates the extent to which economic conditions are impacting on occupier relation and expansion decisions. According to Garrett McClean, who heads up the industrial agency team at CBRE Dublin “There is no doubt that economic concerns are impacting on the expansion and relocation plans of some occupiers. Although a healthy level of 33,603m2 of take-up was achieved in the last quarter of 2011 in 30 transactions, this represents a 17% decline on the level of sales and lettings signed in the industrial sector in Dublin in the previous three month period. There is also a notable decline quarter-on-quarter in the volume of demand for industrial accommodation which is clearly linked to the current economic climate”.
The lack of funding to facilitate the purchase of industrial facilities is also clearly having an impact on this sector. In a market which was traditionally characterised by a large number of sales as opposed to lettings, the lack of availability of debt in the current climate saw more than 70% of the industrial take-up in Dublin in 2011 comprising lettings. However, CBRE say that this trend was quiet different in Q4 when a number of significant sales signed in the quarter led to 54% of take-up in the final three months of the year comprising sales. There were 22 individual lettings signed in the industrial sector in Dublin in Q4, while there were 8 sales of industrial buildings completed in the capital in the period. The largest industrial lettings signed during Q4 2011 include the letting of a 1,858m2 facility at Cherry Orchard Industrial Estate in Dublin North West (N4) and the letting of a 1,851m2 facility at Harold’s Cross in Dublin South City. The largest sales concluded in Q4 include the sale of Unit 25, Grange Parade, Baldoyle Industrial Estate in Dublin North East (N1/M1) and the sale of the former Belgard Motors facility on the Dublin South West (N81) corridor.
The Dublin North East (N1/M1) corridor, accounted for the greatest proportion (31%) of industrial sales and letting activity in the capital during Q4 2011. The Dublin South West (N7) and Dublin South West (N81) corridors accounted for a further 21% and 14% of industrial take-up respectively in the quarter. On an annual basis, these corridors were also responsible for the lion’s share of lettings and sales activity in the industrial sector during 2011.
Demand for industrial accommodation in the Dublin market was just over 90,000m2 at the end of the fourth quarter, a quarterly decrease of 12.5% compared to the previous quarter. There are a number of active requirements from pharmaceutical companies and data centre operators, who to some extent are not as exposed to the economic situation which CBRE say is encouraging.
CONTACT: Marie Hunt – 00 353 1 6185543 / 00 353 87 2727115 or email@example.com
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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 2010 revenue). The Company has approximately 31,000 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 120 employees and offering a full range of property services including property sales and acquisitions, leasing and management, investment, corporate services, project management, consultancy, valuations and research. CBRE Ireland has been listed among the Top 100 Best Workplaces in Europe & the Top 50 in Ireland 2011, for the seventh year running. Please visit our website at www.cbre.ie or www.cbre.ie/ni.