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News Release


Q3 2011 Industrial Take-Up Analysis

Struggling Industrial market shows some signs of positivity

Dublin, 10th October 2011 - We are delighted to announce the release of our first Industrial Research Publication: Dublin Industrial Take-Up Analysis Q3 2011. Compiled by Jones Lang LaSalle’s Research Department and the award-winning Industrial Agency team, the report analyses take-up on a quarterly basis and provides a balanced observation on trends, rental performance and outlook.

Total take-up between Q2 and Q3 2011 has decreased slightly (4.3%), however year-to-date take-up results indicate that annual take-up for 2011 is likely to at least match 2010 levels. Hannah Dwyer, who heads up the Research Department said “Take-up in the first three quarters of 2011 totals 1.27m sq. ft. which is already well on the way to achieving total take-up levels similar to those achieved for the whole of 2010 (1.54m sq. ft.). This is a positive sign for the Industrial Sector which has shown particular vulnerability over the last few years”.

The north-south divide still very much exists as the south of Dublin continues to dominate the market, accounting for 32% of take-up, whilst in the north east there was little activity, which represented only 6.3% of take-up for the quarter. There is also a large gap between modern and older stock, widened by the fall in prime rental values (approx. 50% since the peak) and the availability of modern buildings. Hannah Dwyer suggested that “in a tenant driven market, occupiers are making the most out of low prices, good lease terms and incentives which are driving take-up levels across the sector. In addition, with lower prices, occupiers can now choose modern stock in better locations at highly competitive levels”.
In terms of take-up by type, lettings dominated the market, with sales performing poorly overall. Nigel Healy, Director of Industrial Agency said that, “Given the lack of funding, legislative uncertainty and negative investor sentiment across the whole property sector, it is not surprising that the sector is currently dominated by lettings as opposed to sales”. He also added that “although this isn’t likely to change massively in the short term, there does appear to be some signs of activity across the sector with a number of large-scale transactions happening in the year-to-date.”

Nigel Healy also said that “although year to date results appear relatively stable, the outlook is still unclear. Market stagnation for the sector has not been healthy, however promising take-up levels and a number of large-scale transactions show that there are signs of positivity for the sector going forward”.