Leasing activity in the Dublin office market continued at a solid pace in the second quarter, with just over 400,000sq ft signed and a strong pipeline of deals going forward.
According to a report from Knight Frank, the steady pace of leasing in the period April-June means total take-up for the first half of the year came to almost 800,000sq ft. This is in line with the average achieved across the preceding five half-year periods. Half of the space taken during the six months was located in Dublin 2, “which will add further pressure to current supply and future availability of space in this location” according to the report.
The largest space reserved was 100,000sq ft at 160 Townsend in Dublin 2, for which Enterprise Ireland agreed terms.
Looking ahead, the authors of the report point to a strong pipeline of reserved space, with 1.1 million sq ft agreed, half of which is focused on Dublin 2. One of the largest outstanding deals is artificial intelligence firm OpenAI’s move to the Tropical Fruit Warehouse on Sir John Rogerson’s Quay. The former warehouse had been earmarked for TikTok, but OpenAI is now set to take up its 88,000sq ft of space.
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Businesses across the technology, media and telecoms sector remained a key driver of activity, with a growing presence from AI-focused firms, “highlighting Dublin’s continued appeal as a location for advanced and emerging technologies”.
There was also ongoing activity from professional and financial services firms, such as Cantor Fitzgerald, which took the entirety of the recently developed Bindery House.
There was also activity in the coworking sector, with Iconic Offices continuing its expansion in the Dublin office market by acquiring the former KBC Bank headquarters at Sandwith Court.
“The deal highlights the continued demand for agility in the market and supports Dublin’s attractiveness to new entrants and scaling businesses,” Knight Frank said.
It said its forecast that total take-up will reach 2-2.2 million sq ft for the year as a whole remains on track. Given the ongoing strong steady demand for space, particularly in Dublin 2, the pace of rental growth will accelerate, with prime rents expected to be €70 per square foot by year-end and at least €75 per square foot for pre-lets.
