The Dublin office market has slipped once more, with third quarter take-up down significantly on previous quarters, and on the same period last year, according to research compiled by Insignia Richard Ellis Gunne.

Prime Dublin rents have also experienced a general downward shift since the beginning of the year with prime rents in the city currently at £38 per sq ft (€48.25), compared to £40 per sq ft (€50.78) earlier this year. A slowdown in the office sector has been clearly evident since the beginning of the year.

Figures for the first half of 2001 had been encouraging with the market showing a positive level of take-up to reach 855,027 sq ft. However, the rate of take-up slowed considerably during the third quarter to 314,607 sq ft. The total take-up for the first nine months of the year, to 1.17 million sq ft, compares with the letting of 1.385 million sq ft at this stage last year.

The overall vacancy rate in the market increased substantially during 2001 and currently stands at 6 per cent. The vacancy rate is predicted to rise further before the year's end according to Marie Hunt, head of research at Insignia Richard Ellis Gunne. Third quarter investment in the Dublin office sector amounted to £23 million (€29.20m), bringing total investment in the sector to £95.25 million (€120.94m) to date.

In the same period last year, £119 million (€151.099m) had been invested in the sector. Prime yields in the office sector moved out further this quarter in the absence of transactional evidence to support levels prevailing earlier in the year.

Traditional businesses prevailed with financial tenants and the public sector accounting for 79 per cent of lettings.