Tech firms drive second record year in Dublin office market

New record for capital as volume of lettings increases in 2018 to almost 4m sq ft

Lisney says more than half the office take-up in Dublin during 2018 was tech-related and 80 per cent was located in Dublin city centre. Photograph: iStock

Lisney says more than half the office take-up in Dublin during 2018 was tech-related and 80 per cent was located in Dublin city centre. Photograph: iStock

 

Dublin’s office rental market expanded in 2018, setting new records as tech companies proliferated in the city.

The figures from property consultants CBRE Ireland showed the volume of lettings in Dublin was more than 364,000sq m (3,918,000sq ft) last year, reaching almost 144,000sq m (1,550,000sq ft) during the fourth quarter alone.

The market has been boosted by expansion in the technology sector, with several strategic transactions signed during the year.

“Most of the large transactions signed in 2018 occurred in some of the new office stock being delivered in the capital with occupiers committing to buildings in advance of practical completion,” said Marie Hunt, executive director and head of research at CBRE in Ireland.

It was the second record year in a row for Dublin’s office rental market.

The vacancy rate in the capital was just over 6 per cent at the end of last year.

In a separate report, Lisney said more than half the office take-up in Dublin during the year was tech-related with 80 per cent located in Dublin city centre.

However, a lack of supply meant this trend was unlikely to continue in 2019. Some 85,700sq m (922,500sq ft) of office space is due for completion this year, but much of this is already allocated.

The serviced-office sector is expected to continue growth in 2019, Lisney said. It currently accounts for 135,000sq m (1,453,000sq ft) of office stock in the Dublin region and demand was coming from both the traditional SME sector as well as large global firms seeking flexible accommodation when entering the Dublin market.