Scarcity Of Modern Industrial Stock In Dublin Continuing To Impact On Take-Up
Dublin, 12th July 2016 – Commercial property consultants CBRE Ireland today released their latest Market View report looking at trends in the Dublin industrial & logistics market in the first half of 2016. According to the property consultants, 54,988m2 of take-up was recorded in the Dublin industrial & logistics sector during the second quarter of 2016, bringing total take-up in the first half of 2016 to 119,705m2 - down 35% on the volume of take-up achieved in the first half of 2015.
Industrial take-up during Q2 2016 (and indeed in the first half of 2016) has been somewhat lower than the record volumes of activity achieved last year. However, this is reflective of a severe scarcity of modern accommodation in core locations, as opposed to a weakening in demand levels with demand for accommodation up significantly quarter-on-quarter.
The new report shows that there were 49 individual industrial transactions signed in Dublin in Q2 bringing the total number of transactions in the first half of 2016 to 96. 45% of the transactions signed in this sector in Q2 2016 comprised sales with the remainder comprising lettings. CBRE say that with prime industrial rents continuing to edge upwards, the viability of new development will ultimately improve.
Prime industrial headline rents in Dublin are now in the order of €85 per square metre and are firmly on target to reach our forecast of €94 per square metre during the second half of 2016. As a result of increased rents, we expect to see some speculative development activity emerging wihin the next few quarters, which will begin to alleviate supply pressures. In the meantime, many occupiers will have no option but to continue to pursue ‘design and build’ solutions to satisfy their requirements.
Transactional activity in the industrial sector during Q2 2016 was primarily focused on the Dublin North East (N1/M1) corridor, which accounted for 35% of all sales and lettings completed in Dublin in the three month period and 22% of all activity in the first half of 2016. A further 20% of the industrial accommodation that either let or sold in Dublin during Q2 was located along the North West (N3) corridor while 19% of Q2 2016 take-up occurred along the Dublin South West (N7) corridor.
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.