Monday 18 December 2017

Landmark in industrial market as Citywest unit achieves €100 per sq ft

The Castle House property sold for a record for an industrial unit since the recession
The Castle House property sold for a record for an industrial unit since the recession
Peter Flanagan

Peter Flanagan

An industrial property has sold for one of the highest rates per square foot since before the recession.

According to Knight Frank, a unit in Citywest has changed hands for an average of €100 per sq ft.

The firm acted as agents for the sale of Unit 2001, Castle House, Citywest Business Campus, which has been sold for €1.7m.

The 1,569 sq m property had originally been put on the market to let for some €110,000 per annum Knight Frank's James Smith said there had been considerable interest in purchasing the property.

The property is located on the corner of Castle Drive and benefits from excellent profile onto the main Citywest Road. Access to the Campus is via Junction 3 (Citywest) on the Naas Road / N7.

The neighbouring tenant's in the area include several well known firms including SAP, Independent News & Media, United Drug, Xilinx, Pfizer and Eircom.

The unit was said to be of a "good specification" and included 526 sq m of two storey office accommodation.

"The property benefitted from a good marshalling or loading area, a generous clear internal height of approx. 5.48m as well as ample parking to the front of the property," the agents said.

Knight Frank's James Smith believes that "the price achieved and the rate per square foot that the price breaking back to just over €100, is likely to be the strongest, or certainly one of the strongest, rates per square foot achieved for a vacant industrial property since the recession.

"It follows a consistent trend over the last 12 to 18 months whereby occupiers and investors are seeking to purchase an appropriate facility due to the value for money factor.

"We expect this trend to continue, to such a point where there is no longer a supply of good quality units and design & build options will need to be considered.

"With this lack of supply, some notable developers are now beginning to review their design & build strategies and are lodging planning applications to meet this supply shortage," Mr Smith added.

Knight Frank are offering another industrial a facility at Citywest for rent.

The unit at at Bianconi Avenue in Citywest Business Campus is available immediately with an asking rent of €145,000 exclusive.

The property comprises a modern warehouse facility extending to approx. 2,517 sq m.

The building is said to be of a steel portal frame construction with an insulated metal deck roof incorporating translucent panels.

The facade of the property comprises block infill walls with profile metal cladding to the perimeter of the property.

There is a small temporary office section to the front of the property and loading access is via two roller shutter doors.

The property is described as having a a clear internal height of 7.20m with allocated parking to the front of the subject property.

Mr Smith said the property "offers an excellent opportunity to lease a modern industrial facility in Ireland's premier business park on flexible terms.

"Given the relative supply shortage of units in the 1,000 to 5,000 sq m range, particularly to purchase, agreeing lease terms now provides the opportunity to fix a rent at a relatively low base level in normal market terms for a period of time before any rental increase," Mr Smith added.

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