Suburban move for workers as Dublin office market soars
Companies are looking to move their workforce to Dublin's suburbs where rents are at least half the prevailing rents in the capital's central business district, according to CBRE.
In its latest bi-monthly report focusing on trends and transactions in all sectors of Ireland's burgeoning commercial property market, the commercial property specialist says there is now "tangible evidence" of occupiers looking to move to more cost-effective locations such as the suburbs.
New research from CBRE has also shown that Dublin is now ranked 27th in a survey of global occupancy costs, up from 29th place this time last year.
CBRE says that "particularly strong" take-up was recorded in the Dublin office market in the first six months of 2018, boosted by the recent acquisition of 22,146 square metres of office accommodation at the Boland's Quay development in the south docklands of the city.
CBRE, which says the Irish commercial property market is "pausing for breath" after a busy first half of the year, described as "encouraging" a number of significant transactions in negotiations and several unfulfilled mandates prevailing.
"Activity in each of the occupier markets remained strong throughout the first half of 2018, buoyed to a large degree by continued job creation in the Irish economy," said Marie Hunt, executive director and head of research at CBRE Ireland.
"The months of July and August will now see the pace slow a little with the focus shifting towards closing out many of the transactions that are either in legals or in negotiations at present before the next wave of activity commences in autumn."
Ms Hunt said that prime rents and yields in all sectors remain relatively stable at this juncture, although further rental and capital value growth is anticipated in all sectors of the market in the second half of 2018.
"Considering the strength of both the domestic Irish economy and occupational activity, demand for core real estate investment opportunities in the Irish market remains strong, although there has been a notable sectoral shift in investor appetite over recent months with focus on the build-to-rent/private rented sector becoming increasingly evident," she said.
Another trend that has become evident over recent months is that an increasing proportion of transactions in the hotel, development and investment sectors are being conducted off-market.