The Dublin office market is on course to have its highest ever level of take up this year, according to a report published by CB Richard Ellis today.
In its Dublin Office Market Bulletin, the global property services company said that more than 65,000 sq m (700,000 sq ft ) of space was let in the last three months bringing the half year total to more than 121,000 sq m (1.3m sq ft). This is an increase of 55% on take up during the same period last year. Most of the lettings were in the city centre. The suburbs are faring better than previously with the south suburbs outperforming the north and west suburbs.
James Mulhall, director of office agency at CB Richard Ellis, said: ‘This boom in office letting activity in Dublin, which is similar to that being experienced in many other European capitals at present is being driven by unprecedented demand for new office accommodation from both indigenous and overseas companies, with business services occupiers and financial tenants being most active.’
He said the take-up figures for the rest of the year are expected to be equally strong as there are a number of ‘significant lettings’ under negotiation, more than 90,000 sq m (968,760 sq ft), likely to complete later this year. This would push the total year’s take-up past last year’s record 200,000 sq m (2.1m sq ft) mark. The overall vacancy rate in Dublin is 10.3% and in the central business district is 4.2%
Rental growth is also likely to continue for the next three to four years given the ‘controlled development’ under way in Dublin.