Demolitions outstrip new builds in city office market
The amount of available office space in Dublin fell in the three-month period to the end of June, a new report has found.
Research released by Savills Ireland shows that the large-scale demolition of older buildings in the capital outstripped the delivery of new office office stock by 8,000 square metres in the second quarter.
Around 32,000 sq m of new space was delivered, mainly within the city's prime business districts around Molesworth Street and St Stephen's Green in Dublin 2, and on Burlington Road in Dublin 4 up to the end of June.
However, approximately 40,000 sq m of office stock was decommissioned in the same period.
While Savills said in its report that plans are already under way in most cases to redevelop the properties which have been taken out of use, it noted that one older property - Pinebrook House on Harcourt Street - is being converted to a hotel.
The average age of the buildings that have been withdrawn is 30 years while the average size is 5,641 sq m.
Elsewhere the report stated that the continued "keen demand" for office space resulted in lettings of over 100,000 sq m in the second quarter.
The amount of vacant space on the Dublin market reduced by 9,500 sq m to leave the overall vacancy rate at 9.2pc.
Vacancy rates of less than 1pc prevail for Grade A buildings in the best business locations, Savills said.
Andrew Cunningham, head of offices at Savills, said that the appetite to redevelop older buildings reflected the continued demand for Dublin office space. The demand is particularly weighted towards the central business districts of Dublin 1, 2 and 4.