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Strong demand for Dublin office space continues

Written by Robert McHugh, on 2nd Nov 2017. Posted in Ireland

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A new report from JLL has found that demand for Dublin office space continues to be strong, with 2.1 million sq ft of space occupied in the year-to-date. This is a 22% increase in volume compared to the same period last year. This was driven by a particularly strong second quarter, but activity in the third quarter remained steady with just under 450,000 sq ft of deals completed.
 
According to the report, the increase in take-up in the last 12 months has been caused by a rise in the number of larger-scale deals, with 9 deals greater than 50,000 sq ft, of which 4 were greater than 100,000 sq ft in 2017. This compares to 5 deals greater than 50,000 sq ft, of which 1 was greater than 100,000 sq ft in the same period in 2016. Large deals so far this year include: Facebook letting at The Beckett (190,000 sq ft), OPW at Miesian Plaza (143,000 sq ft) and LinkedIn at Wilton Place (130,000 sq ft) 
 
Demand continues to be strongest from tech-based companies and financial services firms, which accounted for 50% and 15% of take-up respectively. Most of the activity is coming from existing occupiers in Dublin who are growing and expanding, and are not Brexit-related deals.
 
The vacancy rate remains steady at 7.7%, although supply is tighter in the city centre at 4.7%. In terms of new supply, there is currently 4.5 million sq ft of space under construction and refurbishment in the city centre and suburbs, although 40% of this is either pre-let or reserved. 
 
Commenting on the report, Divisional Director and Head of Research at JLL Ireland, Hannah Dwyer said, "It is positive to see the Dublin office market continue to perform strongly, with an impressive level of activity in the first 9 months of the year. In addition to the space that has already signed, there is an additional 1.5 million sq ft of space that is currently under offer. Assuming some of this space closes before the year-end, take-up could potentially achieve over 3.0 million sq ft which would surpass the previous peak of 2.9 million sq ft and would therefore be a new record for the Dublin market."

Source: www.businessworld.ie

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