New commercial space is being let as demand for commercial property increases in Dublin


Logistics companies, pharmaceutical companies and large retailers have snapped up almost all of the new industrial space being built in Dublin.

Between April and June, 89 percent of the 459,000 square feet of new space completed in the quarter was pre-let, according to a survey by real estate agent Savills.

The largest completion of the quarter was the expansion of Dunnes Stores to 78,400 square feet at the Stadium Business Park in Finglas.

Third-party logistics provider GLS, US clinical packaging specialist Yourway and pharmaceutical company Clinigen also expanded their presence.

Take-up in the market totaled 1.3 million square feet for the first six months of the year, despite fears of an economic slowdown, Savills said.

The industrial and logistics market is heating up due to a lack of offers, especially for smaller units.

Only one small deal was signed in the second quarter — for a unit between 5,000 and 10,000 square feet — the lowest take-up since the 2008 financial crisis.

Despite this, construction activity in Dublin’s industrial property market has hit a 20-year high, according to commercial property firm Cushman & Wakefield.

While there has been less space available since 2002 than ever before, more space has been added this year than in all of last year.

Almost two-thirds (61 units) of the space under construction is pre-let or pre-sold to, among others, German freight company DB Schenker, the Public Works Office and retailer LifeStyle Sports.

“We anticipate additional transactions as units near completion,” said Kate English, chief economist at Cushman & Wakefield.

“The construction costs are considerable. It is the highest volume of space under construction since 2002, which will be welcome news for potential occupiers as this space is needed.”

The lack of space and rising construction costs are driving rents up but not affecting demand in the market, said Brendan Smyth, director of industry and logistics at Cushman & Wakefield.

The top rent in Dublin was 115 euros per square meter at the end of June.

“This is being absorbed by the market and further rental growth is expected in the coming months,” he said.

“Confidence in developers of new build logistics space remains high as the market struggles to provide enough buildings to meet market demand.” New commercial space is being let as demand for commercial property increases in Dublin

Fry Electronics Team

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