Industrial deals double in Dublin market
The Dublin industrial market recorded a 48 per cent increase in the volume of space transacted in the year up to the end of September compared to 2012, according to agents DTZ Sherry FitzGerald. The overall level of industrial buildings involved was 205,200 sq m (2,208,731sq ft). The annual take-up for the full year is expected to reach 260,000sq m (2,798,588sq ft) and if this figure is achieved it will be the highest level achieved since 2007.
DTZ said the take-up in the Dublin market over the past number of years had steadily increased year on year from a very low base in 2009.
Despite strong demand for space, the vacancy rate remained high. That said, the level of net take-up was positive in the third quarter resulting in a modest reduction in availability at the end of September. In addition to an increase in aggregate take-up, the number of individual deals transacted in the nine months was up almost 25 per cent on comparable 2012 levels.
The report said an analysis of the profile of space transacted throughout the year to date revealed an increased appetite for medium-sized units, reflecting an improvement in confidence among occupiers.
The largest transaction during quarter three was the sale of Unit A, a 9,000sq m building in Aerodrome Business Park in Rathcoole, Co Dublin, which was acquired by Finning (Ireland) Ltd, a distributor of Caterpillar equipment. Other sizeable deals included the sale to an investor of a 8,400sq m building at Lower Ballymount Road in Dublin 24 and the letting of a 3,700sq m building at Park West Business Business Park.
Brendan Smyth, the head of industrial at DTZ, said the volume of available industrial space was high despite healthy demand. At the end of September there were 1,114,200 sq m available in Dublin. Development activity was stagnant with no space under construction. The appetite for new development had been affected by the low, competitive rental levels which had affected the viability of design and build options.