Decline in Dublin office space leasing in first half of year

The amount of office space leased in Dublin during the first half of the year fell by 35% on the same period in 2015 to just below 90,000 sq m.
However, Commercial property consultants CBRE Ireland – who compiled the figures – said the statistics do not accurately reflect what is going on in the market.

In its report CBRE said: “Although this is down 35% on the same period last year it follows a bumper Q2 in 2015 and masks a number of large deals which are currently underway and due to sign in Q3.”

According to CBRE, a total of 37,199 sq m of office leasing activity in 65 individual lettings occurred in the capital between April and June.
There was only one large letting in excess of 4,645 sq m signed in Dublin during Q2.

Commenting on the figures, Director in the Office Agency department at CBRE According to Alan Moran said: “Although it remains to be seen to what extent the Brexit result will impact on demand for office accommodation in the capital in the medium term, the overall volume of demand for offices rose quarter-on-quarter to 247,000 sq m at the end of Q2.

“38% of requirements at the end of Q2 2016 were specifically focussed on the Dublin 2/4 postcode with the south suburbs accounting for a further 23%,” he added.

During the second quarter, tenants in the computer and high-tech sector accounted for 13% of office transactions signed in Dublin, while overall take-up in the first six months of the year for the sector was 25%.

Meanwhile, financial services tenants accounted for 19% of Q2 take-up and 20% of H1 take-up and business services tenants accounted for 12% of leasing activity in Dublin in the last three-month period and 9% of leasing in the capital in the first half of the year.

Two of the ten largest lettings completed in Dublin during Q2 were expansions, five were relocations while three of the ten largest office lettings in Dublin in the quarter was to a new entrant.

According to CBRE, vacancy rates in Dublin fell between April and June with the Grade A vacancy rate in Dublin 2/4 at approximately 2.4% at the end of Q2. Meanwhile, the overall rate of vacancy in Dublin is now 8.36%. 




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