Saturday 3 December 2016

Wide gap in rankings for rents, values

Donal Buckley Commercial Property Editor

Published 14/04/2010 | 05:00

Unit 11 Nutgrove Shopping Centre, Rathfarnham, a 105sqm store with ancillary mezzanine
accommodation. The agents Lisney are declining to quote a rent. However the centre's agents
Jones Lang LaSalle report rents are averaging around €780 per sqm.
Unit 11 Nutgrove Shopping Centre, Rathfarnham, a 105sqm store with ancillary mezzanine accommodation. The agents Lisney are declining to quote a rent. However the centre's agents Jones Lang LaSalle report rents are averaging around €780 per sqm.

Dublin's office, retail and industrial rents are still among the most expensive in Europe despite the values for similar Dublin properties falling to some of the cheapest.

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While Dublin retail rents have fallen to around €3,055 per sqm they are still the eighth most expensive among 46 cities surveyed by CB Richard Ellis in its Quarter One 2010 survey for Europe, the Middle East and Africa (EMEA).

In contrast the values of prime Dublin retail properties, based on an average 6.5pc yield, is 14th cheapest as it ranks at 32 in the league. This yield makes Dublin shops 19pc cheaper to buy than their equivalents in regional British cities such as Glasgow, Edinburgh and Manchester where yields are 5.25pc.



Unchanged

The three British cities have seen their property values rise in line with a partial recovery in British commercial property values while Dublin retail values have remained unchanged since they suffered a 61pc drop in values in 2008.

Dublin retail rents have fallen 35pc from their peak and three places from their top five position a few years ago, nevertheless CBRE's survey shows the retail rents in Dublin are now almost double those of the three British cities.

Dublin prime offices rents have fallen 44pc from their peak to €376 per sqm in Q1 while yields have moved out 375 basis points to 7.5pc. Nevertheless prime Dublin office rents are still 12th most expensive while its values rank at only 37.

Only Moscow and Kiev offices have seen sharper falls than Dublin in both rents and values. Despite Greece's difficulties, Athens offices are recording higher rents and values than those of Dublin.

A similar gap is shown between Dublin's prime industrial rents and values. Although shed rents have fallen 34pc to €86 per sqm, they are still seventh most expensive in EMEA and industrial yields at 9pc are only 32 on the rankings.

Irish Independent

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