Industrial unit's price slashed by €250,000
Savills has cut the price on an industrial property in west Dublin by a quarter of a million euro.
The agents have reduced the guide price for Unit 801 Northwest Business Park in Ballycoolin, Dublin 15.
The guide price for the property has been reduced from €2.5m to €2.25m, while the quoting rent has fallen from €250,000 to €225,000 per annum.
According to Savills, the subject property comprises a "fully secured" stand-alone industrial warehouse facility.
The site has a floor area of close to 4,807sqm (51,742 sq ft) including approximately 946sqm (10,183 sq ft) of high quality office space over two floors. The unit is described as being of metal frame construction with an insulated metal deck roof.
Savills say the facility "benefits from superb loading facilities via three dock levellers with tailgate loading and three ground level roller shutter doors".
The property has a clear internal height of about 10m and is said to be "in excellent condition" throughout.
There is easy access to the M50 motorway via the N2/M50 junction or the N3/M50 junction. With the M50 motorway close by, the location provides motorway access to all of the main routes to and from Dublin, to Dublin airport and the Dublin Port Tunnel.
According to Daniel Blain, who is acting as agent: "This property is presented in excellent condition and with the recent price and rent reductions, provides interested parties with an opportunity to acquire a high-spec, modern warehouse facility at very competitive levels".
The property is the latest in a long line of industrial properties to have hit the market in recent months, amid optimism that that the market for such sites may beginning to improve.
Savills has said previously there is "superb" value in the industrial market, with prices now well below how much it would cost to build a new property from scratch.
Competitive bidding is resulting in higher prices being achieved in certain cases.
"When the extension of the capital gains tax waiver until the end of 2014 is taken into account, the climate is even better for buyers," the agent's director of industrial Gavin Butler has said.
Some of the major investments so far have included the sale of the 9,000sqm former McCormick MacNaughton facility at Greenogue Business Park and the former Manvik facility on the Lower Ballymount Road.
Values are still way below what is needed to promote speculation.
They would need to double before it would be remotely worthwhile for speculative investment.
"Consequently, vacancy rates are likely to decline further, albeit moderately, over the coming months and there is likely to be modest rental growth for prime space in prime locations," said Mr Butler.
Take-up for 2013 was between 225,000-250,000sqm, which was the highest level of take-up recorded since the property downturn.
Overall, prime rents are in the region of €45-€55 per sqm with capital values ranging from €450-€600 per sqm, Savills claimed.
Despite the growth, the stabilisation is still overwhelmingly focused on Dublin, with 80 per cent of transactions taking place in the capital.
Among the major recent deals was the former Brooks Timber site on the Naas Road, which sold for more than €3m last year.
Sunday Indo Business