Total of 40 office lettings in Dublin in first quarter of this year

Thirty office schemes under construction in Dublin, of which 21% have been pre-let

Development construction in the Grand Canal Basin area of Dublin Docklands. Photograph: Bryan O’Brien

Development construction in the Grand Canal Basin area of Dublin Docklands. Photograph: Bryan O’Brien

 

Almost 50,000sq m of office lettings were signed in Dublin in the first three months of 2017, according to commercial property consultants CBRE.

In total 40 individual lettings occurred in Dublin in the first quarter of this year compared to 50 in the first three months of 2016, according to the analysis.

The volume of demand for office accommodation rose during the first quarter and stood at 280,000sq m, according to the statistics.

Some 30 office schemes are under construction in Dublin, of which 21 per cent has been pre-let.

Of the signings, 41 per cent of office transactions were taken by tenants in the computer and high-tech sector, while the public sector and regulatory bodies accounted for a further 36 per cent of take-up in the first quarter.

Despite this vacancy rates in Dublin rose across most districts, and the city closed the quarter with 7 per cent of office properties vacant, according to the report.

Dublin city centre accounted for the majority of office lettings, with 80 per cent of signings in the first quarter.

In the Dublin suburbs, less than 10,000sq m were signed in the first quarter. The vacancy rate in the suburbs was higher than the city centre, and closed the quarter at 9.69 per cent.

“It is encouraging to see that the Dublin office market continues to perform well regardless of any additional demand that may materialise as a direct result of Brexit,” said Marie Hunt, executive director and head of research at CBRE in Ireland.

The largest office investment transactions signed in the first three months of this year included the forward funding of 13-18 City Quay in Dublin 2, and the sale of an office investment at Fumbally in Dublin 8.