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50pc drop in office letting

A 50pc drop in Dublin office letting was recorded in Q1 2012. The drop is surprising considering the number of recent job announcements and the relatively buoyant activity seen last year. However, consultants CBRE say the fall reflects the current trend of protracted time spans to complete deals.

In total, 32 office lettings were signed in Dublin in Q1, equating to 24,000sqm of letting activity. This represents a decline of more than 50pc compared to Q1 2011 and reflects a 32pc decline compared to the last quarter of 2011.

Marie Hunt, head of research at CBRE in Ireland said: "Quarterly take-up statistics can be quite volatile; it depends on the quantity of lettings that sign in a given quarter.

"Thankfully, there are a number of transactions in legal's at the moment which will boost take-up later this year; encouragingly, there is also a number of unfulfilled requirements. Our research indicates that over the last five years, take-up in the first quarter of the year typically accounts for approximately 20pc of annual take-up. On that basis, our forecast of 130,000sqm of take-up being achieved in Dublin in 2012 seems realistic."

But that forecast is down by about 30,000sqm from the take-up seen in 2011.

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