Property consultants CBRE Ireland today released figures for the volume of office leasing activity achieved in the Dublin market in the first six months of 2019, which shows that a total of 152,201 square metres of transactions were signed in the Dublin market in the first half of the year.
Following the highest first quarter office take-up ever recorded in the Dublin market, the volume of transactional activity in the second quarter was down in comparison, with only one transaction extending to more than 9,290m2 (100,000 sq. ft) signed in the last three-month period although several transactions are in legals and now not due to sign until the second half of the year.
In total, there were 3 pre-letting transactions signed in second quarter 2019 that accounted for 35% of Dublin’s take-up in the quarter. Six of the ten largest office transactions signed in the second quarter were to Irish companies.
The volume of stock reserved at the end of the quarter was almost 106,000m2 which CBRE say bodes well for a strong a strong third quarter. Demand stands at an all-time high of almost 400,000m2 at the mid-year point, with 61% of requirements at the end of the second quarter 2019 specifically focussed on Dublin city centre.
Unusually, lettings to computers & high-tech tenants accounted for only 4% of take-up in Dublin in the second quarter although this sector accounted for 44% of office take-up in the capital during the first half of 2019. The public sector accounted for the largest proportion of office take-up in Dublin in the second quarter (41%), while the business services sector and the consumer services & leisure sectors each accounted for 19% and 17% of leasing activity in Dublin in the second quarter 2019 respectively.
Four of the 10 largest lettings completed in Dublin during the second quarter of 2019 were expansions. Another 4 were relocations and 2 were lettings to new entrants to the capital. The overall rate of vacancy in Dublin rose in the second quarter 2019 to 5.65% from 5.39% last quarter. Meanwhile, the overall rate of vacancy in the suburbs at the end of the first quarter was approximately 6.83% compared to 6.21% three months ago.
Speaking this week, Executive Director & Head of Research at CBRE Ireland, Marie Hunt said, "The Dublin office market continues to perform well with 50 office transactions signed in the last three-month period alone and demand at an all-time high of almost 400,000 square metres at the mid-year point. Supply remains well controlled with almost half of all of the office stock currently under construction in the city centre already committed."