MOMENTUM IN INDUSTRIAL LETTING AND SALE ACTIVITY SLOWS IN Q2 2010
July 16th, 2010 -- According to CBRE’s latest Dublin Industrial Market View for Q2 2010, the Dublin industrial market saw a decline in industrial take-up on both a quarterly and annual bases over the last 3 months. Take-up – both sales and lettings – came to only 19,364m2 in Q2, with 98% of take-up occurring through lettings. Take-up in Q2 2010 was down approximately 50% compared to Q2 2009, but remained above the all-time low take-up levels seen at the start of 2009. Despite the slowdown in lettings and sales in the three months ending in June, the take-up seen in Q2 2010 brings take-up for the first half of the year to 77,232m2, an increase of approximately 43% on the same period in 2009.
According to Garrett McClean, Director of Industrial at CB Richard Ellis, “Thanks to the strong start to the year, 2010 has so far been a better year for industrial letting activity in Dublin than 2009, despite the slowdown in Q2. While we’re disappointed that take-up in Q2 wasn’t stronger, there are a number of large lettings currently being finalised in Dublin that will boost take-up in Q3.”
There was only one industrial sale in Dublin during the quarter, with the vast majority of industrial occupiers favoring short-term and flexible leases. The southside of the River Liffey resumed its dominance of the Dublin industrial property market, with 63% of take-up activity occurring within the Dublin South West (N7 & N81), Dublin South East (N11), and Dublin South City districts. Rents experienced more downward pressure in Q2, with prime headline quoting rents standing at €82 per square metre at the end of the quarter. Prime industrial yields remained stable at 9%.
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