Business Commercial Property

Friday 22 August 2014

Rents up most in 8 years but still lag

Peter Flanagan

Published 27/04/2014 | 02:30

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COMMERCIAL rents across the board rose the most in eight years in the first three months of 2014, in another sign of growth.

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According to research from Lisney, its composite measure of commercial rents rose 5.2pc in the first three months of the year. That is the highest single jump since 2006.

Year-on- year, the index is up more than 7pc, but in a sign of how deep the crash was, it is still 48.5pc off its peak level.

Most of the growth came from the office sector, where conditions continued to improve.

However, supply continued to fall and new build projects remained lacking.

"Construction projects remain well below the necessary level despite the economics of building stacking up," the firm said.

In Cork, demand for office space was "robust" between January and March. Uptake was at the strongest level in "a number of years", while the amount of available accommodation fell.

The Cork picture was skewed by the sale of Island House in Eastgate Business Park in Little Island. The property, bought by the pharmaceutical giant Eli Lilly, accounted for close to 40pc of all activity in the region.

Sunday Indo Business

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