The bulletin says 32 per cent of office take-up was newly built, while 21 per cent was in second-hand buildings. The remainder was in buildings under construction. Half of the take-up comprised units of less than 5,000 sq ft.

Shortage of supply in the office market is also highlighted by Gunne in its spring market bulletin. Take-up in the first quarter of this year reached 325,630 sq ft, according to the bulletin. Gunne says 2.6 million sq ft of office space is currently under construction with almost 50 per cent of this space pre-let.

Office rents are continuing to rise due to tenant demand, which is greatest for third-generation space and Georgian office buildings. Gunne estimates that £29.5 million has been invested in the office sector during the first quarter, adding that occupational costs in Dublin are still very competitive when compared with other European capitals.

Gunne suggests the office vacancy rate at 1.9 per cent is the lowest in over 30 years.

Take-up this year is likely to exceed two million sq ft. Gunne predicts more displacement to suburban locations, such as City West and Sandyford, and that third-generation office rents will rise even further, reaching £30 per sq ft before the end of this year. Refurbishment and upgrading of older stock in traditional office locations is also likely to become more commonplace. "The top rental value for third-generation office space in Dublin is currently in the order of £26 per sq ft. This has risen by a staggering 30 per cent since the first quarter of 1998. Rents in suburban locations will reach £20 per sq ft.

Financial institutions accounted for 35 per cent of office space occupied in the first quarter of 1999, while 32 per cent was taken up by business or service operations. Information technology companies accounted for another 26 per cent.

The Dublin 2 and 4 areas represented 48 per cent of office space taken in the period. Gunne notes, however, that almost 50 per cent of new office space being developed in 1999 was in out-of-town locations. "The LUAS development will also open up new opportunities in areas such as Sandyford, Dundrum and Tallaght."

Of the 27 per cent of office take-up in the north suburbs of the city, the majority was at East Point, while 16 per cent was in the IFSC complex.

The bulletin says 32 per cent of office take-up was newly built, while 21 per cent was in second-hand buildings. The remainder was in buildings under construction. Half of the take-up comprised units of less than 5,000 sq ft.