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Take up levels still remain reasonably strong for the quarter in excess of 320,000 sq ft, to give a take up for the year to date of over 980,000 sq ft.
Jones Lang LaSalle have now completed their analysis of the take up for Quarter 3 2012. Take up levels still remain reasonably strong for the quarter in excess of 320,000 sq ft, to give a take up for the year to date of over 980,000 sq ft.This is down on last years’ figures, however is still a strong level given the current World economic climate.
One of the most notable trends this Quarter is that in order to make the take up levels, there were 52 lettings and the average deal size was only just over 6,000 sq ft. In fact over 80% of all deals this Quarter were for less than 10,000 sq ft. This reflects levels of demand mainly from foreign direct investment who are looking to establish in Ireland with short term flexible office space for between 2-5,000 sq ft for the first year or two, pending their long term growth plans.
TMT continues to drive take up, equating for a quarter of deals this Quarter and the take up was split evenly between the city and suburbs.
Top transactions for the Quarter include:• Capita – 40,000 sq ft at 2 Grand Canal Square• Tullow Oil – 25,080 sq ft at No. 1 Central Park• Allianz World Care – 21,269 sq ft at Park West• JTI – 16,000 sq ft at Riverwalk, Citywest Business Campus• Chase Paymentech – 14,703 sq ft at East Point
We estimate that there is up to 1.5 million sq ft of latent demand in the market with companies such as Airtricity, AA, Novartis, Google and Vodafone all looking for accommodation. In addition there are a couple of potential confidential large requirements for the city centre looking at pre-letting opportunities.The vacancy rate for Dublin 2 is continuing to fall and now stands at just over 13%, down from a high of almost 18% for the same period in 2010.
There is still no large development either planned or under construction and as such, we envisage that the vacancy rate for prime accommodation will continue to fall. There are only 4 buildings greater than 50,000 sq ft (developed since 1990) available in the city and as such, the choice is limited for any larger requirements.
Jones Lang LaSalle estimate that take up for the year will reach 1.3 million sq ft. The fall in prime vacancy rates, particularly in Dublin 2, give further support to the argument that many of the vacant older buildings will require refurbishment in order to compete in the market. This is particularly true when you look at buildings such as 2 Hume Street, 5-9 South Frederick Street and St James House which have undergone full refurbishments, with 2 of the buildings now leased.
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