Strong last quarter boosts 2012 take-up although annual take-up lower than the long term average
Dublin, January 22nd 2013 – Property consultants CBRE today released office statistics for the fourth quarter of 2012 showing that over 49,000m2 of office lettings were signed in Dublin in the last three months of 2012. This brought total take-up in the Irish capital in 2012 to over 136,000m2 with a total of 156 office transactions signing in Dublin during the year according to CBRE.
To download a pdf copy of the full Dublin Office Marketview Q4 2012 Report, please see link further below.
- Office take-up of 49,460m2 achieved in Dublin during Q4 2012, bringing total take-up in the Dublin office sector in 2012 to 136,200 m2
- 51 individual office lettings signed in Dublin in Q4, bringing the total number of office lettings to sign in Dublin in 2012 to 156
- The vacancy rate in all districts of Dublin decreased marginally over the course of 2012, buoyed to some extent by a lack of new speculative development
- Prime headline quoting rents in Dublin city centre remained stable at approximately €296 per m2 during 2012 although secondary rents remained under downward pressure
- There was a notable improvement in transactional activity in the investment sector, particularly in the second half of 2012 with the bulk of demand for prime offices emanating from international investors
Although significantly boosted by the Central Bank transaction of over 18,000m2 in Dublin Docklands (the first pre-letting to occur in the Irish market since 2008), much of the activity last year emanated from existing occupiers expanding and relocating as opposed to new entrants with many corporate occupiers delaying location decisions in light of economic circumstances. According to Marie Hunt, Executive Director at CBRE, Ireland “The volume of office take-up in the capital at 136,000 square metres is somewhat less than the 150,000 square metre long-run average for the city. While this is a very healthy result considering the economic backdrop, it is nevertheless disappointing that there were few new corporate announcements during 2012 and that many of the transactions signed last year were relatively small in size”.
According to CBRE, there was a gradual decline of the overall vacancy rate in Dublin over the course of 2012, with the overall availability rate decreasing from 22.9% to 21.4% over 2012. Meanwhile, the vacancy rate in the south suburbs decreased from 14% to 13.5% over the course of 2012 while the vacancy rate in the prime Dublin 2/4 postcode decreased from 16.8% to 15.3% during the 12 month period.
Irish companies accounted for 78% of the lettings signed in Dublin during the final quarter of last year, accounting for a total of over 38,000m2 of office transactions in 24 individual lettings during Q4. US companies meanwhile accounted for 13% of office take-up in Q4, while UK companies were less active over the quarter, accounting for just 859m2 of office letting activity in the capital in the last three months of the year, mirroring the trend of previous quarters of the year.
Financial occupiers accounted for the majority of office accommodation signed in Dublin last year (27%). IT companies were also active during 2012, accounting for 24% of lettings in the capital last year. Business services tenants meanwhile accounted for a further 19% of the office take-up in Dublin in 2012.
Prime rents in the Dublin office market ended the year where they started, having remained stable at €296 per square metres for four consecutive quarters.
Over €260 million of office investment transactions completed in nine individual transactions of more than €1million in value in Q4 2012. This brought the total level of investment spend in the office sector over the year to €436 million, which equates to 72% of the overall investment spend of more than €602 million in the Irish investment market during 2012.
CONTACT: Marie Hunt – 01 6185543 /087 2727115 or firstname.lastname@example.org
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 firm (in terms of 2011 revenue). The Company has approximately 34,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE 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. Please visit our CBRE US website
In Ireland, with offices in Dublin and Belfast, CBRE is the country’s largest commercial real estate services company, now employing over 110 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, valuations and research. Please visit our CBRE Ireland website