Thursday 23 May 2019

M50 and outer orbital lands are in demand


Donal Buckley

Donal Buckley

LANDS sandwiched between the M50 motorway and the proposed outer orbital route are already emerging as hotspots for logistics and industrial occupiers and the area is expected to become increasingly sought-after as the suburbs of Dublin continue to stretch beyond the county's environs and into her surrounding hinterlands.

Price-sensitive, large industrial occupiers are showing an increasing tendency to relocate from sites within close proximity to the M50 to the new and emerging locations outside the motorway. Often, existing industrial-based businesses within or in close proximity to the M50 have outgrown their facilities, which are often obsolete.

In many cases the sites they are vacating are being redeveloped for higher end uses such as retail warehousing, offices, car showrooms and, in some instances, residential developments. Both types of property trends are tracked in new satellite images made by the industrial team at CB Richard Ellis.

Garrett McClean, head of industrial at CBRE says: "There is a lack of industrial zoned land within close proximity to the M50 motorway and this lack of availability is the prime decision driver when deciding to relocate. That said, the other two main drivers are the availability of labour and the improved roads infrastructure.

"The massive investment into roads, predominantly along the M1, N2, M7 and N11 corridors, have contributed to these high levels of demand for the new emerging industrial locations. Our research indicates that demand along the M7 is at an all time high of 36pc of the overall demand for the Dublin area, which is currently only accounting for approximately 22pc of take-up."

Mr McClean explained that the satellite images will provide an extremely effective tool for both occupiers and developers, giving a comprehensive view of where one can expect the next development hotspots to emerge.

"The map clearly identifies the main corridors around the Dublin's M50 C-ring road, identifying the key lands zoned for industrial and related uses."

He says that another key factor driving the moves is cost: "For example, land along the M7 corridor within the M50 is on average trading for approximately €2m per acre, in comparison to €750,000 to €1.2m per acre along the M7 corridor within the proposed C-Ring road in the general Naas to Newbridge region.

"That said, no one can doubt that sustainability will become a key feature of these larger developments which are currently proposed."

The proposed outer orbital route (C-ring road) will be key for future industrial development in the medium to long term.This new orbital motorway will run outside the M50 and will extend to approximately 80km, linking the M1 close to Drogheda, through the N2 at Slane, the N3 at Navan, the N4 at Kilcock, and linking into the M7 motorway at Kilcullen, close the M7/M9 interchange. At present there is no extension route planned for the N11, as the Wicklow Mountains would obviously represent a large engineering and environmental challenge.

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