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Published in Commercial Property on 08/01/2020

Office Lettings Exceed 300,000 sq.m in 2019

#CBRE

CNI Editor reports

CBRE Ireland have today released figures for the volume of office leasing activity recorded in Dublin during 2019. According to the property consultants, almost 110,000 square metres of office leasing transactions were signed in the Dublin market during the last quarter of 2019, bringing total office take-up in 2019 to an impressive 302,594m2

While down approximately 17% on the record volume of transactional activity recorded in 2018, a number of transactions simply didn’t sign by year-end and will now carry over into Q1 2020. In total, there were 63 office transactions signed in Dublin during Q4 bringing the total number of office deals signed in the capital during 2019 to 199, compared to 239 in 2018. 

All of the 10 largest lettings completed in Dublin during Q4 2019 were expansions.

 

Dublin Office Take-Up 2009 – 2019

 

Source: CBRE Research

There were 8 pre-letting transactions signed in Q4 2019 that between them accounted for more than 60% of Dublin’s take-up during the final quarter of the year. 26 of the 63 office transactions signed in Dublin during Q4 were to Irish companies, accounting for 19% of Q4 take-up between them. Meanwhile, there were 20 transactions to US companies completed in Q4, accounting for 73% of leasing activity in the quarter. In addition, there were 8 lettings to UK companies signed in Q4 2019.

Encouragingly, demand stood at a healthy 432,172m2 at the end of December, having increased quarter-on-quarter despite the healthy volume of activity recorded during 2019. This bodes well for 2020. According to CBRE, 71% of requirements at the end of Q4 2019 were specifically focussed on buildings in Dublin city centre. In total, 22% of leasing activity in the capital during 2019 occurred in the suburbs of the city. 

Lettings to computers and technology tenants accounted for 58% of take-up in Dublin in Q4 and 34% of overall take-up in Dublin in 2019.

The overall rate of vacancy in Dublin fell in Q4 2019 to 5.05%, down from 5.32% in Q3.