JLL Dublin Office Market Update – Q3 2022

The JLL Dublin Office Market Report examines the data and trends throughout Q3 2022 and provides an outlook for the market's future.

Q3 2022 has been the most notable quarter for the office market since the onset of pandemic restrictions in March 2020. The quarterly take-up volumes are up +120% from the pandemic quarters recorded in 2020/2021, and prime headline rents in the City Centre are at record highs with a number of leases signed at €67 per sq. ft. While the volumes have increased in 2022 in comparison to the previous two years, there has been a decrease in the average size of space signed by tenants in the post-pandemic environment.

Average volumes for the year to date in 2022 are down -23% from the five-year average between 2015 to 2019, primarily driven by the slowdown of tech occupier expansion. It is anticipated that this trend will continue as many occupiers seek to repurpose existing space rather than expand as they make meaningful assessments over new hybrid working arrangements which will influence longer-term real estate decision-making.

With 1.7m sq. ft of take-up recorded in the first nine months of 2022 and a further 1.1m sq. ft of reserved space in legals, we are encouraged by this level of active tenant demand and anticipate it to translate to a robust annual. JLL estimates that over 2.2m sq. ft of space will be signed by the end of 2022, which is approximately +33% of the volumes recorded during the pandemic years 2020/2021. There is a further 2.0m sq. ft of active demand for office space in Dublin which we expect to translate to take-up in 2023