Limerick office rents plummet 35pc from peak
Rents for Limerick offices have fallen at least 35pc from their peak and rents for unfitted offices in the city centre which were €172 per sqm are back as low as €107.6 per sqm in some cases. However, both developers and tenants are finding it difficult to finance the fitout of shell offices and consequently fitted offices are in greater demand.
These are among the findings in the latest Limerick commercial-property report covering the second quarter of the current year.
In response to the financial restrictions, tenants are achieving more flexible lease terms for offices that are already fitted out. Smaller offices are more in demand with a slight premium being paid if the property is at ground floor or has some profile in the city centre.
In suburban locations some shell offices are being marketed at €86-€129 per sqm, depending on the quality of the building and its location.
Some fitted offices are available in suburban locations such as the National Technology Park where Shannon Development are renting some smaller-type offices on flexible lease terms and even monthly licences in some cases. Here rents range from €108 to €172 per sqm.
With even weaker demand for larger offices, in those buildings where a significant amount of space is available, very competitive deals are available and thus may reflect an even greater reduction of 40pc from peak rents.
Capital values have been more difficult to gauge due to lack of sales. Overall, there is activity in the market, however, there is very little demand for large office accommodation.
John Buckley, director of DTZ Sherry Fitzgerald Limerick said: "Within the past three months there has been increased activity in the industrial/warehouse sector. There are a number of enquiries from companies wishing to expand or relocate."
"Within the office market, IDA Ireland reports a number of enquiries from clients wishing to locate in the Mid-West region".