STRONG END TO THE YEAR AS DUBLIN INDUSTRIAL TAKE-UP REACHES 53,000 SQUARE METRES IN Q4
According to CBRE’s latest Dublin Industrial Market View, the Dublin industrial market made a quarterly rebound in overall take-up (sales and letting activity) during Q4 2009, with 53,000m2 of lettings and sales recorded in the capital. This brings total take-up for 2009 to more than 133,000m2 during a year when business activity was at record lows. The activity recorded in Q4 2009 marks not only a doubling of lettings and sales on a quarterly basis, but a doubling of letting and sales activity compared to Q4 2008.
More than 23,000m2 of the take-up in the final three months of 2009 comprised a letting to Aer Lingus at Dublin Airport, but even if this transaction is stripped from the Q4 data transactional activity increased between the third and fourth quarters of 2009. Lettings of industrial property accounted for 96% of overall take-up in Q4, with sales of 2,228m2 comprising the rest of industrial take-up. Activity in both sales and lettings were focussed on the northern districts of the Dublin market, with the N2, N3 and M1/N1 transport corridors accounting for a total of 84% of transactional activity in Q4.
According to Garrett McClean, Director of Industrial at CB Richard Ellis, “As we’d suspected earlier in 2009, although the N7 remains the transport corridor most in demand by industrial occupiers, a shortage of modern accomodation along that route has occupiers investigating other locations, most notably the northern districts of the Dublin market where the majority of take-up in Q4 occurred. Take-up in Q4, aided by the letting at Dublin Airport, was better than expected on both quarterly and annual bases, making 2009 as a whole a much healthier year of industrial activity that was expected a year ago. The market remains a difficult one, but there are obviously great opportunities for tenants seeking to relocate or expand their operations.”
In their annual Outlook 2010 report issued last week, CBRE said that it is difficult to envisage a strong improvement in transactional activity in the industrial sector. The property agents said that economic indicators are improving which will ultimately stimulate demand for industrial premises but it is likely to be the latter end of 2010 before there is any discernible improvement in demand. In the report, CB Richard Ellis said they expect demand to primarily emanate from the high-tech biopharmaceutical and R&D sectors and that over the course of the next 12 months, occupiers will continue to spend time consolidating their operations and attempting to renegotiate their leases in an effort to cut costs.
For Further Information, please contact
CB Richard Ellis
Tel + 353 1 6185561
Email - firstname.lastname@example.org
Mobile + 353 87 2374121
About CB Richard Ellis
CB Richard Ellis Group, Inc. (NYSE:CBG), an S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2007 revenue). With over 29,000 employees, the Company serves real estate owners, investors and occupiers through more than 300 offices worldwide (excluding affiliate offices). CB Richard Ellis 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. In 2007, CB Richard Ellis was named one of the 50 “best in class” companies by BusinessWeek, and one of the 100 fastest growing companies by Fortune.
In Ireland, CB Richard Ellis is the country’s largest and fastest growing commercial real estate services company, now employing over 125 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. Please visit our website at www.cbre.com