Q3 sees take-up of over one million square feet of industrial space
Over one million square feet of industrial space was taken up across 36 deals in the three months to the end of September, according to the latest report on the sector from JLL.
The figure 99,875 sq m (1,075,037 sq ft) represents an increase of 92pc on the take-up for the second quarter of 52,095 sq m (560,754 sq ft). The uplift was largely accounted for by a number of large leasing deals which were executed in the period. The top five deals represented 58pc of total take-up in Q3.
While overall take-up was dominated by smaller-sized deals with 47pc of transactions involving spaces of less than 929 sq m (10,000 sq ft), deal size continues to grow. Some 28pc of deals in the third quarter were for spaces of between 929 sq m (10,000 sq ft) and 2,787 sq m (30,000 sq ft). The average deal size in Q3 was 2,774 sq m (29,862 sq ft), more than twice the level in the same period in 2017 1,495 sq m (16,089 sq ft). The largest deal in the period was a 20,425 sq m (219,853 sq ft) sale at Lufthansa, Naas Road. This was followed by the largest letting to have taken place in Dublin this year, in which joint agents William Harvey and Savills secured Sonas Bathrooms as tenants for the 12,494 sq m (134,484 sq ft), Unit 103 Northwest Business Park, Ballycoolin at an annual rent of €1.1m.
Commenting on the performance of the sector, Nigel Healy, director at JLL's industrial division, says: "We are starting to see the uncertainty of Brexit have an influence on the market. Occupiers are exercising caution in making decisions with regards to expansion or signing long-term leases until there is greater clarity surrounding the structure of future trade relations. That said, many occupiers are conscious that they may need substantial additional warehousing for stock in Ireland by next year but decisions are being delayed."
Niamh Manning, research analyst with JLL, adds: "Year-to-date take-up has now reached 2.3m sq ft. We are forecasting for year-end volumes to surpass the level achieved in 2017 and to be in the region of 2.9m sq ft, in line with the market performances of 2013 and 2014."