Strong First Quarter In The Dublin Office Market
Dublin, 13th April 2016 – Commercial property consultants CBRE Ireland today released their latest Market View report looking at trends in the Dublin office market in the first three months of 2016. According to CBRE, a total of 52,442m2 of office leasing activity in 50 individual lettings occured in the capital during the first quarter of 2016, which is an impressive result with more than three quarters of this letting activity occuring in the city centre.
According to Alan Moran, Director in the Office Agency department at CBRE, tenants in the computer and high-tech sector accounted for 34% of office transactions signed in Dublin during Q1 2016. Financial services tenants accounted for 20% of Q1 take-up while business services tenants accounted for 7% of leasing activity in Dublin in the last three month period. Interestingly, 7 of the ten largest lettings completed in Dublin during Q1 2016 were expansions , 2 were relocations while only one of the ten largest office lettings in Dublin in the quarter was to a new entrant.
Vacancy rates in Dublin fell again in Q1 2016 with the Grade A vacancy rate in Dublin 2/4 at approximately 1.5% at the end of Q1. Meanwhile, the overall rate of vacancy in Dublin is now 7.7%. Prime headline quoting rents rose to €619 per square metre (€57.50 per square foot), up from €592 per square metre (€55 per sq. ft.) at the beginning of the year.
CBRE say that prime office investment yields remained stable during the quarter at 4.65%. The total volume of office properties purchased for investment in Dublin in the quarter reached almost €348 million.
Q1 has been very strong with an impressive volume of office leasing activity occuring in the capital and a significant volume of stock reserved, which bodes well for take-up in subsequent quarters. Availability remains constrained but stock is now more tangible for occupiers considering the volume of development that is currently underway and planned. Our research shows that at the end of Q1, there were 26 office schemes under construction in the capital, extending to almost 319,000m2 between them. 28% of this stock has already been pre-let. The remainder equates to less than the volume of take-up achieved in the Dublin market during 2015. Only 92,308m2 of office stock is due for completion in the capital in 2016 with more than half of this stock already committed.
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.