CBRE has reduced the asking price for an industrial property in south Dublin, with a new value of €2.25m.
The property (right), which had originally been priced at €2.75m when it was first brought to market, comprises four industrial- type buildings extending to 3,930 sqm on a regular- shaped site of two acres.
The property is for sale by private treaty with the short- term tenant not affected.
Unit 71-73 Heather Road is the main facility. It extends to about 2,922 sqm, while Unit 1 and 2 are located at 70 Heather Road and extend to 470 sqm. Unit 3 and Unit 4 extends to approximately 270 sqm.
According to CBRE's Jarlath Lynn, who is acting as agent over the sale, Unit 71-73 would suit a wide variety of users such as medium-sized manufacturing or general industrial use, while the smaller units are highly suited to small businesses requiring flexible space.
Unit 3 is currently leased to a fitness company, Be Fit For Life, who leases the property under a short term. The remaining buildings are vacant with letting interest being recorded on all.
Under the Sandyford Urban Framework Plan, the site is located within Zone 4 being identified as 'Light Industrial/Warehousing based Employment Uses'.
A plot ratio of 1:0.5 with a building height limit of two storeys can be developed on the site, subject to planning.
Mr Lynn said the property should appeal to both owner-occupiers and investors alike, and believes that certain owner-occupiers could seek to offset their purchase costs by selling off or leasing the smaller units.
This is the latest in a rash of industrial sites to come to market in the past few months, as interest in the sector ramps up after years of stagnation.
While the market is still flat outside Dublin, there has been renewed interest in industrial and logistics sites around the capital, particularly when the site is close to major roads such as the M50 or M1.
Last November, the former Brooks Timber site on the Naas Road changed hands for more than €3m, while a number of properties at Airport Business Park have come to market as well.
The growth in the industrial sector has come amid renewed interest from international investors in the sector.
Last year, close to €2bn worth of commercial property changed hands – highest since the peak of the boom – but only a handful of deals in the commercial sector were worth more than €1m.
In its 2014 outlook, CBRE said the market was likely to at least match the transactional activity that occurred in 2013.
"With demand continuing to outstrip supply for well-located modern facilities, we expect to see an increase in industrial rents emerging in the capital for the first time in six years during 2014," said the firm.
"By year-end, we expect prime industrial rents in the capital to have reached €67.75 per square metre or €6.30 per square foot.
"This rental growth will be stimulated by the slow net absorption of quality accommodation along some of the arterial routes out of Dublin where supply shortages will ultimately emerge due to a complete lack of speculative development over the last number of years," CBRE said.