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News Release

Dublin

Quarter 3 2011 Office Market Bulletin

Vacancy rates now at pre-recession levels


Dublin, 30 September 2011 - The Quarter 3 2011 Office Market Bulletin from Jones Lang LaSalle shows the Office sector is now the best performer of the commercial property market. 
 
In line with an increase in take-up, as predicted by Jones Lang LaSalle, the overall vacancy rate has continued to decrease and is now 18.9%.  Fionnuala O’Buachalla, Director of Tenant Rep at Jones Lang LaSalle said “Take up in the first three quarters of 2011 totalled 1.36 million sq ft, which already exceeds total take-up for the entire of 2010. Over 42% of space taken was by companies who are expanding which is great news for Ireland. We are seen as a location that can offer competitive occupancy costs, flexible lease terms and choice of good quality accommodation”.
 
In terms of location, the demand for City Centre was 51% with 49% in city edge and suburbs. In Q3, the clear location of choice was Dublin 4 which had almost 23% of take up, closely followed by Dublin 2.The average deal size increased slightly to 8,333 sq ft with 72% of all transactions being below 10,000 sq ft which is standard for the market size.
 
The vacancy rate for the city centre is now at 15.8% and the suburbs stands at 22.8%. Deirdre Costello, Director of Office Agency at Jones Lang LaSalle said “These levels are back at Quarter 3 2007 rates, which was before the recession took hold and the availability of prime office space, particularly for large occupiers will tighten further over the next 3 to 6 months. We are confident that rents have bottomed out with average Q3 rents of €25 per sq ft in the city centre and €16 per sq ft in the suburbs”.
 
There is currently in excess of 300,000 sq ft reserved for quarter 4 which suggests 2011 take-up of 1.7 million sq ft. This level is veering towards pre-recession levels
which averaged 2 million sq ft.
 
Further information is available from Deirdre Costello or Fionnuala O’Buachalla at 01 6731600.