Strong take-up of Dublin office space will continue this year, according to Lisney's quarterly review. The greatest shortage will be in the city centre, with little change in availability until early 2001, when completions of the first buildings in the Dock-lands area outside the IFSC are expected.

The review says rents in the city centre are "under severe upward pressure" but increasing supply in the outskirts of the city should "temper rental growth". However, the differential between city centre and suburban rents may encourage city centre occupants to rationalise their accommodation needs in favour of quality, out-of-town locations with good infrastructure.

Prime rents this year are expected to be between £25 and £30 per sq. ft and good secondary city centre space will achieve £17 to £20 per sq. ft. Outside the city centre, prime rents in places such as Sandyford will be about £16 to £20 per sq. ft. Rents for Georgians are in the £16 to £20 bracket.

Last year's record momentum will continue and the vacancy rate has fallen to around 2.5 per cent. Take-up of space so far this year is about 500,000 sq. ft, with the largest deal at Grand Canal Plaza and the strongest deal at Montague House (Adelaide Road) where Scottish Amicable are securing 45,000 sq. ft at a rent of around £27.50 per sq. ft.

Space under construction and due for completion this year (but not let/sold) is around 822,810 sq. ft and the amount of space now available for occupation is 301,324 sq. ft.

International occupiers account for over 58 per cent of new take-up and there is plentiful demand but a distinct lack of product for buildings in excess of 100,000 sq. ft.

Some 1,100,000 sq. ft of office space will come available, with 57 per cent of this in the suburbs and around the M50 extending to Cherrywood in Loughlinstown. Dramatic rises in Dublin rents have underlined the attraction of other centres, notably those with educated work-forces and competitive costs.