Activity increases along N7 and N81 corridors

IndustrialMarket: A number of new "hot spot" locations have emerged along the N7 and N81 corridors in Dublin south-west and these are attracting increasing volumes of industrial business.

A new analysis of all transactions in the Dublin area by agent CB Richard Ellis shows that 45 per cent of industrial sales completed in the final three months of 2006 were located along the N7 corridor while the N1/M1 corridor accounted for 28 per cent of sales activity.

The report also shows that 34 per cent of buildings sold to owner-occupiers were under 465sq m (5,005sq ft) while industrial units ranging between 1,859sq m (20,010sq ft) and 4,644sq m (49,987sq ft) accounted for 28 per cent of all sales. Sales of industrial buildings were still the preferred business option in the final quarter of the year, accounting for 63 per cent of all industrial activity.

Sales of investment properties exceeded €90 million during the year and CBRE forecast that the volume of sale and leaseback activity would increase over the next few years.

Garret McClean of CBRE said that they are expecting an increase in the level of letting transactions due to recent and expected interest rate increases which was putting pressure on debt-financed buyers.

However, the market would continue to be dominated by sales activity in the short to medium term.