Dublin’s office market strengthened in the second quarter of the year as companies sought out higher-quality space.
A new report from Colliers showed take-up rose 57 per cent quarter-on-quarter to 623,039 sq ft across 58 transactions, as companies across finance, professional services, technology and healthcare sectors moved to accommodation that met hybrid working strategies and their ESG commitments.
The quarterly figure was in line with the five-year average of 623,000, and with the second quarter of 2025, although the total last year included 34 deals, with the Workday’s major letting at College Square in Dublin 2 accounting for 65 per cent of the quarterly total.
The Collier report showed Dublin’s city centre remained the most popular location, although there was a decline in its share to 58 per cent from a long-term average of 70 per cent. That was due to two large healthcare owner-occupier deals in the south suburbs of Dublin, including the HSE’s Cherrywood deal.
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The biggest letting during the quarter was State Street’s Grand Canal Quay deal, at 78,000 sq ft, followed by Iconic Offices’ deal for the former KBC headquarters in Sandwith Court, Dublin 2. Prime rents rose to €65 –€70 per sq ft, the report said.
Vacancy rates fell year on year from 14.9 per cent in 2025 to 13.9 per cent in the second quarter. Excluding reserved space, the vacancy rate fell to 12.2 per cent.
The report also noted limited future supply, with more than 65 per cent of space currently under construction already pre-let or owner-occupied. The report stated that several city centre sites were development-ready, but without a pre-let agreement, with construction unlikely to commence. Landlords are also expected to continue upgrading older stock, it added.
