STRONG PERFORMANCE IN FINAL QUARTER OF 2010 PUSHED ANNUAL TAKE-UP TO 130,600 SQUARE METRES
6th February 2011 | The Dublin office of CB Richard Ellis Group (“CBRE”), the international commercial real estate firm, today released their Dublin Office Market View Q4 2010, which revised up take-up on both a quarterly and annual basis. The property consultants said that their research indicated that letting activity in the capital office market reached just less than 46,500m2 in the last three months of the year, bringing the annual total to more than 130,600m2 – significantly more than was anticipated at the beginning of 2010 and an upward revision from the firm’s first estimate released in December.
Please see Marketview pdf file at the link further below
Major lettings signed in Q4 2010 include:
A letting of 6,938m2 to Bank of Ireland at Burlington Plaza, Dublin 4
A letting of 5,486m2 to the Central Bank at Iveagh Court, Dublin 2
A letting of 5,215m2 to Bord Gáis at One Warrington Place, Dublin 2
A letting of 2,508m2 to AOL at The Brunel Building, Heuston South Quarter, Dublin 8
Two lettings totalling 1,925m2 to Google on Barrow Street, Dublin 4.
The letting to Bank of Ireland, signed just before the New Year, was not only the largest letting of the quarter but also the largest letting of 2010 and the largest single office letting seen in Dublin since 2008. In fact, the top three largest Dublin office lettings signed in 2010 occurred in the fourth quarter, resulting in the strongest quarterly take-up figures since Q3 2008. CB Richard Ellis’ research indicates that Dublin 2/4 accounted for more than 61% of overall Dublin take-up during the period.
Take-up was spread across all tenant categories in Q4 2010. The largest proportion of Dublin take-up was attributable to the financial services sector, which accounted for 29% of overall take-up in the period. Computers & hi-tech tenants were also quite active in the Dublin market during Q4, accounting for 21% of overall take-up. Despite the large headline take-up figures, the majority of lettings were actually comprised of relatively small transactions; lettings that extended to 465m2 or less accounted for 37 of the 60 lettings signed in Q4 2010.
All districts of the Dublin market saw an increase in vacancy during Q4 2010, with the overall vacancy rate rising from 22.9% to 23.6%. Despite the increase, the South Suburbs remains the Dublin sub-district with the lowest vacancy rate at 15.3%. More than 27,000m2 of new office stock were completed in Q4 2010, bringing the total new office supply for 2010 to 108,700m2. There remains only one office development of 1,361m2 under construction in Dublin and set to complete in 2011. Total Dublin office stock now stands at more than 3.62 million square metres, with CB Richard Ellis’ research indicating that 838,300m2 of this stock is currently vacant.
Willie Dowling, Head of Office Agency, said, “We’re pleased that our initial estimate for both annual and quarterly take-up was proven to be too conservative and that 2010 ended with such strong activity. While rationalisation continues to be a major part of the Dublin office market, new requirements and entrants into the market accounted for 44% of total take-up in Q4. Both take-up and demand continue to be focussed on the city centre, specifically Dublin 2 and Dublin 4. This is likely to continue through 2011 as prime headline rents in the city centre experienced further downward pressure in Q4 2010 and fell to €345 per square metre. Increasingly competitive rents and assurances that our low corporate tax rate will remain in place make Dublin attractive to international office occupiers and will continue to do so through 2011, which we expect to be another relatively healthy year for office letting activity.”
The Dublin Office Market View Q4 2010 also notes that six office investment transactions signed in 2010 contributing more than €100 million of Irish investment spend during the year. Office investments therefore accounted for approximately 41.4% of total Irish commercial property investment in the year which saw a total spend of €241.7 million. Prime office yields were trending stronger at 7.25% in Q4 2010.
Director of Research
Tel:+353 1 618 5543
Mobile:+353 87 2727115
Director of Office Agency
Tel:+353 1 618 5590
About CB Richard Ellis
CB Richard Ellis 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 2009 revenue). The Company has approximately 29,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. 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. CB Richard Ellis has been named a BusinessWeek 50 “best in class” company for three years in a row. Please visit our website at www.cbre.com.
In Ireland, with offices in Dublin and Belfast, CB Richard Ellis is the country’s largest commercial real estate services company, now employing over 100 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. CB Richard Ellis Ireland has been listed among the top 50 Best Workplaces in Ireland, 2010, for the sixth year running. Please visit our website at www.cbre.ie or www.cbre.ie/ni