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News Release

Dublin

Take-up of Office Space in Dublin is 78% higher than same quarter last year

Location and Quality are still the deciding factors in choosing a building.


Take-up of office space in Dublin performed strongly, with almost 500,000 sq.ft. of space transacted. This is 78% higher than Q1 2012 when take-up totalled 280,915 sq.ft. It also the second consecutive quarter of strong take-up results, showing continued signs of stability and recovery in the Dublin office market.

Take-up continues to be dominated by smaller lettings, with 68% of deals for space less than 10,000 sq.ft. There were 3 large deals which helped to push average deal size to over 10,000 sq.ft. which is significantly higher  than the average for last year (8,645 sq.ft.)
 
Deirdre Costello, Director of Office Agency stated that ‘location and quality are still the deciding factors in choosing a building. This is evidenced by the fact that 85% of take-up was in 3rd Generation buildings. Whilst the take-up in the suburbs was high (63%), it was driven by three large lettings. In terms of number of deals, Dublin 2 accounted for 30% and as such was the strongest sub-market’.
 
Overall, supply increased by 0.7% in the quarter with vacancy now at 18.9% or 7.5m sq ft. Despite the slight increase in the quarter, the vacancy rate is lower than Q1 2012 when it stood at 19.9%. The increase in supply is largely due to recent vacancy in 3 large buildings.
Fionnuala O’Buachalla, Director of Tenant Rep said that ‘given the demand for 3rd Generation office space, one of the challenges for the market is the high level of vacant stock (22%) over 20 years old. To meet demand, these buildings will need to be upgraded. Once modernised, many of these buildings will lease well and will have good floor plates catering for companies seeking 10,000 sq.ft. or less (68% of take-up)’.