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Signs of recovery in industrial property

Wednesday, October 10 11:38:27

Following another strong quarter of Dublin industrial property deals over the last three months, the level of activity in the sector in the first nine months of 2012 has been the highest since 2008, latest figures from consultants, CBRE show.

This quarter's take-up of over 56,600 square metres of accommodation let or sold in Dublin has resulted in a total transaction level of just under 157,000 square metres completing in Dublin in the first nine months of the year.

A resurgence in owner occupier activity led to sales transactions accounting for 36pc of all deals in Q3 2012, while 22 individual lettings comprised the 36,300 square metres let in the capital over the quarter. Owner occupiers and tenants alike have continued to favour the Dublin South West (N7) corridor as 57pc of all deals signed in Q3 2012 were located in schemes along the corridor.

The strong activity experienced in the sector over the quarter was dominated by two large transactions over 10,000 square metres in size that signed in the Ballymount area of the Dublin South West (N7) Corridor.

Indeed Garrett McClean, Director of the Industrial agency team at CBRE Dublin notes that a surge in demand in this sector is for larger space requirements by distribution companies and occupiers looking to expand or relocate.

"In some way, this is a result of occupiers taking advantage of the current stable prime rental level of E60 per square metre, however it is also indicative of some positive economic trends that emerged from purchasing and retail sales indices over the summer. While the sector is particularly at the mercy of the ongoing threat to export demand from Europe, storage and distribution occupiers continue to actively seek new industrial accommodation across the capital."