Boost for Limerick as industrial take-up surges
The industrial markets in Limerick, Cork and Galway recorded increased activity in the three months to the end of September.
Limerick recorded the highest take up -- 9,950sqm -- but with 255,650sqm of available space, it still has the highest vacancy rate at 27.7pc.
Industrial rents are also cheapest in the Limerick-Shannon area.
They are averaging around €43 per sqm, according to the latest regional survey from DTZ Sherry FitzGerald.
On the other hand, Limerick prices range from €753 per sqm for small units, up to €968 per sqm for some larger units and some of these are higher than prices quoted for some Cork units.
In Cork, rents range between €45 and €65 per sqm depending on size and location. Capital values range from €540 per sqm for small units on Cork's northside to €1,050 per sqm for larger 'sheds' on the southside of the city.
The rebel city recorded take up of 4,500 sqm and its industrial space availability reached 189,000 sqm at the end of September.
While this amounts to a respectable vacancy rate of 14.5pc in the current market, it's not the full picture, as a further 25,750sqm of speculative accommodation is being built and this could increase the vacancy rate to 20pc.
The vacancy rate has also been exacerbated by the increase in the amount of second hand space coming to the market.
On the other hand, Cork's take-up during the first nine months of this year is 15pc higher that the same period of 2009 and enquiry levels are continuing to gather momentum.
While Galway's take up was the lowest of the three cities at 2,950sqm, it appears to have the healthiest market in some respects.
Its availability at 72,100sqm is also the lowest of the three cities, albeit accounting for 15.2pc of the stock.
Galway also has some of the highest prices and rents. Prices range from €1,291 for large units on the eastern side of the city to €861 per sqm for units of less than 1,000 sq m.
Rents range from €54 per sqm to €65 per sqm.
Over the 12 months to end September, 6,200sqm of space was taken up -- more than three times the space taken in the previous corresponding period.
But occupiers are noting a lack of suitable accommodation in the city area.
DTZ agent Aidan Gavin expects those in search of modern space to continue moving out of town to places such as Oranmore and Claregalway because both of these places have convenient access to the M6 and N17.