JLL Dublin Office Market Review - 2022

The Dublin Office Market Report examines the data and trends throughout 2022 and provides an outlook for the 2023 market.

2022 was a robust year for leasing events despite the economic headwinds and the slowdown of the tech sector, which made up 42.7% of leasing volumes from 2012 to 2021. The Dublin market outperformed 2021 by 50%, with 2.47m sq. ft leased across 191 deals. The average volumes were down -13% from 2017 to 2021 but the number of deals transacted increased by +6.8%. This is reflected in the average size of a transaction which from 2017 to 2021 was 15,674 sq. ft, and this was down -17.4% in 2022 to 12,950 sq. ft.

Banking and finance was the most active sector in 2022 with 32% of the market, the first time it has been the leading sector for take-up volumes since 2012. Tech represented 24% of the market, its lowest market share since 2008 when it was 22% of take-up that year.

Removing the focus from the volume of space to the frequency of transactions, it reflects a market that is rebounding from the constraints endured throughout the pandemic years. Hybrid working has become a standard employment requirement within many industries, most notably tech, banking and finance, and professional services, which combined represented 68% of take-up in 2022. JLL research found that 77% of organisations agree/strongly agree that offering remote/hybrid working will be critical to attracting and retaining talent.

Between the years 2010 – 2019, Grade A take-up was 60.4% of the market. From 2020 – 2022, it was 80.8% of the market. The flight to quality has begun and it has been propelled by the sustainability agenda, as occupiers seek to meet their internal ESG objectives. Prime located Grade A buildings with the highest sustainability credentials will continue to attract occupiers and will command premium rental levels.

Relationships between building owners and occupiers are evolving to a collaborative approach forming new partnerships that meet their aligned ESG criteria. Landlords need to deliver sustainably designed buildings and tenants need to monitor their usage of office accommodation in order to deliver their combined sustainability goals.