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Quoting Rents Hit €50 per sq ft
The latest quarterly report from real estate, investment and advisory firm; JLL, provides readers with yet another positive summary of Dublin’s office market.
As is the norm for the summer quarter, take up was lower in Q3 than the previous quarter with 255,442 sq ft of office take-up, however, after a steady Q1 and Q2, total take up for the year to date exceeds that of the same period in 2013.
Technology, multi-media and telecoms (TMT) continue to dominate the market, accounting for 38% of overall take up, with lettings to tech companies such as Amazon, Square Space, SanDisk, AdRoll, and Quantcast this quarter.
Market demand does not appear to be declining, with a 23% increase in enquiries recorded for this quarter and the city center remains the most desired location with over 70% of all enquiries seeking accommodation in the traditional CBD, IFSC, Dublin 2 and Dublin 4 areas. However, interestingly larger enquiries are focusing on suburban locations as the level of quality stock in the city continues to reduce and the price differential increases.
Vacancy rates continue across the board with overall vacancy now at 15% and the City Centre and Suburbs rates at 12.9% and 18.5% respectively. There is a concern for the Dublin office market in 2015 regarding the under-supply of Grade A space in the city centre, however with a number of refurbishments underway and due to commence and with a few new developments under construction, supply should return in the next 12 -18 months.
Aoife Murray of JLL reported “With almost 1 million sq ft reserved and due to sign in the next 3-6 months, vacancy will decrease further in the short term. This impact on the availability of Grade A space will push quoting rents beyond €50 per sq ft in 2015. The concern is will this the lack of stock effect have a negative effect on demand in 2015 ”.
For more information please contact the Office Agency Team at JLL.
Head of Research