Solid First Half To 2019 For Dublin's Industrial & Logistics Sector
July 5th, 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 half of 2019. According to CBRE, 173,252m2 of take-up was recorded in the Dublin industrial & logistics market during the first half of 2019, up almost 60% on the same period last year. An element of this increased demand for modern industrial & logistics buildings is believed to be Brexit-related. A significant proportion of acquisition activity, of both industrial buildings and land, continues to occur on an off-market basis.
There were 70 individual industrial transactions signed in Dublin in the first half of 2019. Although the volume of take-up recorded in this sector in Q2 was down compared to the previous quarter, there are several large transactions in legals which didn’t sign in Q2 as expected and have now carried over into Q3. Demand for modern industrial buildings in strategic locations around the M50 and its main arterial routes continues unabated, led for the most part by requirements from the logistics, Ecommerce, data centre and food & beverage sectors. There has also been a notable increase in demand from indigenous occupiers for units extending to less than 1,000m2 in recent months
74% of the total volume of industrial take-up recorded in Dublin in Q2 2019 comprised lettings (28 transactions) with the remaining 9 of the 37 transactions signed in the period comprising sales. 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 Q2 2019. Prime rents are expected to rise by approximately 6.5% by year-end 2019. Transactional activity in the industrial & logistics sector during Q2 2019 was primarily focused on the Dublin South West (N7) corridor, which accounted for 35% of all sales and lettings completed in the Dublin market in Q2 and 34% of all sales and lettings in this sector in the first half of 2019. Meanwhile, 33% of industrial take-up in the second quarter of the year occurred along the Dublin North West (N3) corridor. A further 16% of the industrial accommodation that either let or sold in Dublin during Q2 was located along the Dublin North East (M1) corridor.
There were no transactions extending to more than 9,290m2 (100,000 sq. ft.) in size signed in this sector during Q2 2019. 55% of industrial take-up in the capital in Q2 comprised transactions that extended to between 4,645m2 and 9,290m2 (50,000 -100,000 sq. ft.) while 32% comprised transactions extending to between 1,858m2 and 4,645m2 (20,000 - 50,000 sq. ft.). The overall volume of demand in the industrial and logistics sector fell slightly quarter-on-quarter as some requirements were fulfilled. In total, there was demand for almost 107,000m2 of industrial accommodation prevailing at the end of Q2 2019.
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