Brexit: Ireland’s office market could cope with expected influx

Ireland is well-positioned from an office occupier perspective to benefit from some of the post-Brexit uncertainty, according to estate agent JLL which is expecting to see a "positive short-term bounce" in demand from occupiers.

But questions are being raised about Ireland’s ability to absorb this increase in demand given our low office vacancy rates – now well-below European averages – and rising rents.

JLL points out, however, that speculative office construction in Dublin has bounced back strongly with a “steady stream of new supply to come on to the market over the next five years”.

Hannah Dwyer, associate director and head of research at JLL, says that there are a number of new and refurbishment office schemes that will bring additional good quality stock to the market in the short-term.

“In terms of new stock, almost 7.5 million sq ft of available space in Dublin is either under construction or has planning permission,” says Ms Dwyer.

“This represents almost 20 per cent of the existing total market size while 2.7 million sq ft of this will be delivered in the next three years, with the rest likely to be phased over the following two to three years.”

Ms Dwyer believes that there is “very limited risk of over-supply” in the office market provided that the strong demand, which has averaged 2 million sq ft per annum in the last 10 years, remains.

“Dublin, therefore, has the capacity to welcome new occupiers into the city,” she says. “Although there are limited large building options available in the next three to six months for immediate occupation, there will be an increase in supply from new and refurbished space towards the end of this year.”