Industrial rent cuts boost competitiveness
The cost of Irish industrial space has recorded the best improvement in its competitiveness in Europe as the costs fell 20pc in 2009 -- the largest fall of all European markets.
This is among the findings of a recent survey by Lisney and their international alliance partner Cushman & Wakefield, which found that total occupancy cost (rent plus taxes and service charge) for prime industrial space in Dublin at the end of 2009 was €129 per sqm per year compared to €157.50 a year previous.
Consequently Dublin has dropped from third to seventh in the most expensive industrial locations.
Another agent, CB Richard Ellis, says prime quoting rents in the Dublin market are now in the order of €86 per sqm and have yet to stabilise.
Among the factors contributing to the downward pressure on rents are the number of factory closures and the moves by developers who purchased industrial facilities for redevelopment who are now offering them for let on a short-term basis.
One of the largest to recently come up for sale is the former Amann Industries industrial facility at Clash Industrial Estate, Tralee, Co Kerry and the agents, Lisney, are asking €3.9m.
The freehold property comprises premises with a floor area of 37,453sqm (403,142 sq ft) incorporating both an industrial property in eight divisions as well as an adjoining office block both on a 26.8 acre site.
In a separate deal a modern warehouse facility at Stadium Business Park, Ballycoolin Road, Dublin 15, is available to let on flexible terms at just €550,000 per year. Agents Savills point out that Unit 1, Stadium Business Park comprises a total of 7,271sqm including 900sqm of offices.
Meanwhile a corporate HQ office and warehouse distribution facility in Greenogue Business Park, near the Naas Road, Co. Dublin, is quoting an annual rent of €322,000.
Agents William Harvey & Co are open to offers for Units F3 & F4, which comprise 3,147sqm including 525sqm of office and staff facilities as well as 2,622sqm of warehousing.
It is situated on a detached site just 1.1km from the Rathcoole interchange on the Naas Road.
The industrial sector received a boost recently from the Irish Business and Employers Confederation (IBEC) which has revised its economic forecasts.
The group now forecasts that the economy, as measured by GDP, will shrink by just 0.7pc in 2010, in contrast to IBEC's earlier prediction of 1.6pc.
For 2011, it has pushed up its forecast rate of growth from 1.7pc to 2.1pc.