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DUBLIN, 28th October 2015, JLL industrial take-up, which records the letting and sales activity by occupiers of net space that has been released onto the market shows that take-up for Q3 was 981,483 sq.ft. across 44 deals. Year-to-date take-up is 3,154,854 sq.ft. which already exceeds year-end take-up totals for the last 10 years. There were 4 transactions greater than 50,000 sq.ft. which has boosted total volumes this quarter.
Hannah Dwyer, Associate Director and Head of Research said that “It is positive to see the industrial market continue to perform strongly in terms of demand. Year-to-date volumes for 2015 have exceed the highest annual level for 10 years. If Q4 performs as strongly as the first 3 quarters in the year, we may see take-up exceed 4.0 million sq.ft. which would be the highest level achieved since our records began. The greatest threat to this occurring is the lack of availability of prime stock which is impacting occupier choices. There is evidence of occupiers being forced to consider non-prime space or alternative locations”.
Prime rents have experienced further growth in Q3 and now stand at €7.00 per sq.ft. Secondary rents remain unchanged this quarter at €4.50 per sq.ft.
Nigel Healy, Director Industrial added that “We are still aware of only 1 large-scale scheme in Dublin that is currently under construction, which is the Green REIT development at Horizon Logistics Park. It is hoped that as supply continues to tighten, we will start to see more signs of development activity, which the market desperately needs. With no additional supply to be brought to the market, and continued strong demand, we expect to see prime rental growth in the next quarter and next year. We expect to see deals achieve €7.50 per sq.ft. in the next 3 months, and by end-2016, we are forecasting that rents will achieve €8.25 per sq.ft for good quality existing stock.”
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