I was in Cork last week to speak to one of the local pharmaceutical companies and took the opportunity to update myself on the cork market.
In all honesty, for decades one could usually check the Cork market by observing the trends in Dublin, which some time later came south at significantly lower levels.
But now I feel that Cork has reached a new ‘critical mass’, backed by an independent planning policy that has brought new momentum to the market.
Signs of activity are evident early on as the southbound visitor arrives at Dunkettle Roundabout, a notorious traffic hub.
The intersection is being remodeled to open up traffic flow, and road improvements extend east to improve access to the business districts around Little Island.
Cork County Council has ambitious plans to develop large areas of Cork’s suburbs following a review which saw the expansion of Cork’s urban area. The Port of Cork Master Plan 2050, which envisages the relocation of port activities downstream, frees up key city center sites for development.
The scale of development has been remarkable and Peter O’Flynn, Managing Director of Cushman & Wakefield Cork, told me that the uptake of major new office projects including Navigation Square 2 and Penrose Dock has been very good.
The first building on Horgan’s Quay is largely let, while a second 12,500 sqm is under construction. In general, top rents this year are around €335 per square meter (psm), and €375 per m² will be quoted for next year’s space.
Mr O’Flynn told me that logistics is booming this year with rents in the ‘high €90’ per minute and in 2023 with buildings quoted up to €115 per minute. In retail, Patrick St is “coming back well” and the vacant Debenhams property should be sold by the end of the year.
Supply of investment stocks is thin, partly because Cork’s two largest developers, John Cleary Developments and O’Callaghan Properties, are keeping much of their product. Prime yields for office property are 4.85 percent and for logistics 4.75 percent, underscoring the narrowing differential in value between Dublin and Cork.
understand housing development
Henry Murdoch’s for decades Dictionary of Irish Law Arguably the most cited textbook in law firms.
Now Mr Murdoch has written what I believe will become the seminal textbook on housing management and housing and a practical guide for homeowners, property management companies and management agents.
Mr Murdoch told me he was inspired to write this book after ‘downsizing’ into an apartment and then having to spend two years solving a litany of management company problems.
His goal now is to contribute to improving the level of knowledge in this field and to promote urgently needed legal reforms.
The Multi-Unit Developments Act 2011 was enacted to address issues in the industry such as the failure of developers to delegate the ‘common areas’ to the Owners Management Companies (OMCs), poor corporate governance in OMCs; Failure of many owners to pay annual service fees and insufficient sinking funds.
Mr Murdoch says these problems will remain in 2022, in part due to a lack of knowledge on the part of OMCs, their directors, executives themselves and inadequacies in the law.
Living in a Flat in Ireland – A Practical Guide for Owners Owner management companies and managing agents offers a lot of useful tips and a lot of sensible advice as well as legal restrictions.
https://www.independent.ie/business/commercial-property/cork-is-breaking-out-from-under-dublins-real-estate-shadow-42168523.html Cork is breaking out of Dublin’s real estate shadow