Saturday 16 December 2017

Q3 office letting figures set to bring total above 2012

Donal Buckley

The amount of office space taken up in the third quarter of this year is expected to bring overall office take-up for the year to above the level achieved last year.

With 68,283sqm reserved for the third quarter, Jones Lang La Salle expects that total take up for 2013 should be in the region of 144sqm (1.5-1.6 million sq ft) That is slightly ahead of the 139,300sqm take-up seen in 2012.

Hannah Dwyer, head of research at JLL calculates that there was a slight drop in quarter two take-up after a strong level of office lettings in the first quarter of this year which pared back first half growth to 4.5pc with total first half take-up reaching 691,684 sq ft (64,260sqm).

CBRE are more bullish, saying 28,203sqm of office transactions were signed in Dublin in the second quarter of 2013, bringing total office take-up in the first half of 2013 to 67,506sqm – a 23pc increase.

Marie Hunt, head of research at CBRE sreports 43 individual office transactions signed in the capital during Q2 2013 the majority comprising relatively small lettings while 40 transactions were recorded in Q1.

JLL estimates that prime city centre rents now average €30 to €35 per sq ft. A mid point equivalent of €350 per sqm compares with CBRE's estimate of €323 per sqm. It also estimates suburban rents have increased slightly to €14 to €18 per sq ft. CBRE estimates that they range from €134.50 per sqm in the western suburbs to €172 per sqm in the south Dublin suburbs.

James Nugent managing director Lisney reports growing numbers of purchases by occupiers, a sector which was non existent 18 months ago. He also pointed to an unusual feature in that the city centre share of activity fell from more than half to less than a third. But this was mainly due to the largest letting in the quarter being at 1 Waterside, Citywest where Fidelity took 5,300sqm or 23pc of all take up for the quarter.

Lisney and JLL report that vacancy rates remain around 19pc and Lisney estimates total availability at 668,000sqm or the equivalent of 4.5 years supply.

Ms Dwyer adds: "We expect vacancy to remain at high levels whilst there is a significant level of older vacant stock. 65pc of the vacant stock in Dublin is Grade B and C which totals 5.1m sq ft".

Technology firms continue to dominate take up accounting for 16 of the recent deals and some have also reserved space for the third quarter.

Irish Independent

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