Skip Ribbon Commands
Skip to main content

News Release

Dublin

Growing Pains Await Corporate Occupiers


Jones Lang LaSalle’s Q2 2011 EMEA Corporate Occupier Conditions research shows that office occupiers may face the new pressure of accommodating growth and expansion whilst Dublin is likely to see its first significant pre-letting, possibly before year end.
London, 22nd June 2011 – Jones Lang LaSalle’s Q2 2011 EMEA Corporate Occupier Conditions research shows that office occupiers may face the new pressure of accommodating growth and expansion. 
 
Vincent Lottefier, Head of Jones Lang LaSalle’s Corporate Solutions EMEA team; “The last 24 months have been quite a roller-coaster ride for office occupiers in EMEA.  Economic and operating conditions have been turbulent; uncertainty has been rife; and manoeuvring to take advantage of softer real estate market conditions has been constrained.”
 
Vincent Lottefier continued; “Things are changing.  Corporate cash balances are in rude health and will enable both investment and acquisition activity.  Coupled with a greater degree of certainty, this has enabled strategic planning to take hold.  Critically, the word ‘expansion’ has resurfaced and is underpinning some floor-space requirements in the market.”
 
According to Jones Lang LaSalle, occupier activity across EMEA real estate markets is primed to increase and this is creating a further challenge.   Fionnuala O'Buachalla, Head of Tenant Rep in Jones Lang LaSalle Dublin added; "Despite the vacancy rate in Dublin being at 21.5%, there is a notable lack of high quality corporate headquarters, in particular for requirements over 12,000 m2. The market is seeing an increase in enquiries from occupiers in this size range which is encouraging for Landlords and the Dublin office market. The lack of supply at the large end of the market coupled with the fact that there is no stock currently under construction are indicators that the Dublin market is likely to see its first significant pre-letting, possibly before year end. In the normal size range, there is still significant choice for Tenants with 900,000 m2 of stock available, although with continued increasing take up levels, the supply of quality accommodation in prime locations is tightening."
Jones Lang LaSalle highlights that in this low supply environment, EMEA office occupiers are moving towards a pre-letting strategy.  This creates an opportunity for them to drive a deal and shape the space to meet with requirements and enables developers to obtain funding by virtue of having secured a tenant. 
Vincent Lottefier, concluded; “Is this a win, win situation?  Well for those with a clearly defined and forward looking real estate strategy it is.  But for those CRE (Corporate Real Estate) leaders needing to respond to expansionary demand from their wider business, having a solution two to three years down the line is not likely to cut it.  In this situation CRE leaders need to think creatively about their existing office space.  They need to drive greater productivity from their existing portfolio by focusing on the workplace and underlying working styles.  Squeezing more value from existing floor-space may for many be the only real solution in a market short on quality supply.”