Vacancy rate in Dublin falls back to 2009 levels
The health of the office market in Dublin has received another boost with the vacancy level in the city now at the lowest point since the crash.
JLL’s Quarterly Office Market Report shows that the vacancy rate is now down to 16.6pc- the lowest since the end of 2008.
The take up level in the second quarter of this year came in at almost 420,000 sq ft. That has brought the half year total to over 1 million sq ft so far in 2014.
While the vacancy rate has fallen across the board, the most dramatic drop has been in the city centre which fell from 14.7pc last quarter to 12.9pc at the end of quarter 2, with the suburbs vacancy rate at 21.1pc.
JLL report that Technology Multi-Media & Telecommunications (TMT) sector continues to be the most active in the market with AdRoll and Indeed both doubling their head count and space occupancy in the last quarter and this trend is expected to continue with a number of large and small enquiries unsatisfied and in the market.
As a result of the high level of demand and diminishing supply quoting rents and prime rents in the city centre have also continued to rise to €45 per sq ft and early €40’s respectively. This contrasts with CBRE, whish has said prime office rents are at €40 per sq ft currently. However the suburban market has not moved with the city with quoting rent and prime rents constant at €20 per sq ft and €18 per sq ft respectively.
“The main challenge is the continuing demand for Grade A stock in the city centre. That is now only makes up 3.5pc of the vacancy and it is set to reduce further,” said JLL’s Simon McAvoy.