Dublin office leasing activity still strong despite Q2 dip

Property specialists CBRE says market is being driven by record level of demand

 

Office leasing activity in Dublin remains strong despite a weaker second quarter, according to property specialists CBRE.

The firm’s latest quarterly barometer of activity shows that a total of 152,201 square metres of transactions were signed in the Dublin market in the first half of 2019.

Following the highest first quarter office take-up on record in Dublin, the volume of transactional activity in the second quarter was down in comparison.

CBRE noted there was only one transaction extending to more than 9,290 square metres, albeit several transactions were in legals and due to be signed later in the year.

Despite the dip, the market, it said, continues to be driven by record demand for space.

In total, there were 3 pre-letting transactions signed in the second quarter that accounted for 35 per cent of Dublin’s take-up in the quarter. Six of the 10 largest office transactions signed were to Irish companies, CBRE said.

Demand, it said, stands at an all-time high of almost 400,000 square metres at the mid-year point, with 61 per cent of requirements specifically focussed on Dublin city centre.

CBRE noted that unusually lettings to high-tech tenants accounted for only 4 per cent of take-up in the second quarter although this sector accounted for 44 per cent of office take-up in the capital during the first half of 2019. The public sector accounted for the largest proportion of office take-up in Dublin in the second (41 per cent).

“The Dublin office market continues to perform well with 50 office transactions signed in the last three-month period alone and demand at an all-time high of almost 400,000 square metres at the mid-year point,” Marie Hunt, executive director and head of research at CBRE Ireland said,

“ Supply remains well controlled with almost half of all of the office stock currently under construction in the city centre already committed,” she said.