Very Strong First Quarter For Dublin Office Market
Dublin, 06 April 2018 - Property consultants, CBRE Ireland, have today released figures for office take-up achieved in the Dublin market in the first three months of 2018, which clearly show that activity continues at pace in the Irish capital following a bumper year in 2017.
The first three months of 2018 have been very busy with a record volume of Q1 take-up being achieved. In total, 83,493 square metres of office leasing transactions were signed in the Dublin market in the first quarter of 2018 - up more than 69% on the volume of take-up recorded in the same quarter in 2017.
60 individual lettings occurred in Dublin in the first three months of the year with 28 of these transactions being to Irish companies. US companies accounted for 16 transactions in the period while there were 7 lettings to UK companies in Q1. 2 of the 60 transactions that completed in the first quarter of the year extended to more than 9,290m2 (100,000 sq. ft.), which provided a welcome boost to take-up. Both of these transactions were pre-lettings. In total, pre-lets accounted for more than 30% of take-up in Q1 2018, which is indicative of the trend for occupiers to pre-commit to buildings which are still under construction in the capital. Interestingly, more than half of all the new stock that has been completed so far this year or is due for completion before year end 2018 has already been committed.
Computers & high-tech tenants accounted for 44% of take-up in Dublin in Q1 having accounted for a phenomenal 54% of take-up in the previous quarter. Meanwhile, business services tenants accounted for 28% of take-up in the first three months of 2018 while the financial services sector accounted for 15% of leasing activity in Dublin in Q1 2018. According to CBRE’s research, the overall rate of vacancy in Dublin fell again in Q1 2018 to 5.9% from 6.08% last quarter. Meanwhile, the Grade A vacancy rate in the Dublin 2/4 district at the end of Q1 2018 was 2.77%.
“Despite evidence of increased appetite for suburban offices, the city centre continues to dominate. In fact, the city centre accounted for 72% or 60,279m2 of office take-up in Dublin in Q1 2018. There were 41 individual lettings signed in Dublin city centre during Q1 of which 29 occurred in the Dublin 2/4 district specifically. 69% of city centre take-up in the three-month period occurred in Dublin 2/4”.
Prime headline rents in the city centre remained stable at €700 per square metre (€65 per sq. ft.) at the end of the first quarter, unchanged from year-end 2017.
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 2017 revenue). The company has more than 80,000 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
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 135 employees, we work with occupiers, investors and developers of office, industrial and logistic, 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