Industrial sales in Q4 puts gloss on a poor year
Dublin's industrial property market suffered a fall in letting demand during 2011 but an upturn in industrial sales in the last quarter.
The largest sales concluded in Q4 include the sale of Unit 25, Grange Parade, Baldoyle Industrial Estate in Dublin North East (N1/M1) and the sale of the former Belgard Motors facility in Dublin South West (N81).
According to one agent, CB Richard Ellis, the take-up for the whole year totalled 140,800sqm of space -- down from the 170,000sqm of take-up seen in 2010. Meanwhile Lisney estimates that the take-up fell 6.7pc to an even lower level of 140,200sqm.
Garrett McClean, who heads up CBRE's industrial team says "Although a healthy level of 33,603sqm of take-up was achieved in the last quarter of 2011 in 30 transactions, this represents a 17pc decline on the previous three month period.
There is also a notable decline quarter-on-quarter in the volume of demand which is linked to the current economic climate."
Cathal Daughton, industrial director at Lisney, says large logistics operators drove demand in the early part of the year while there was an increase in the smaller sized transactions later in the year.
He also points out that 2011 saw the first industrial land transactions in over two years when a two acre high profile site was sold close to the N2/M50 junction for a motor showroom.
The deal is believed to be worth about €600,000 per acre and subject to planning approval.
Mr McClean says that while lettings accounted for more than 70pc of 2011 take-up, during Q4 sales accounted for 54pc. There were 22 lettings and eight sales during the quarter.
He also reports active requirements from pharmaceutical companies and data centre operators who, to some extent, are not as exposed to the economic situation.