Almost 1m sq ft of Office Leased in 2022 to Date - Construction Network Ireland - Construction Network Ireland

Back to News

Next Article

Published in Commercial Property on 27/07/2022

Almost 1m sq ft of Office Leased in 2022 to Date

#KnightFrank

CNI Editor reports

Q2 was another strong quarter for office demand against a challenging backdrop of continued shocks to the global economy and the reality of a domestic economy still in expansion mode. 491,000 sq ft was taken-up, bringing the total office take-up to 962,000 sq ft for the first half of the year. 

There is continued evidence of pent-up demand in the market with 1.4m sq ft of space reserved, which is higher than the 1.2m sq ft that was reserved at the end of Q1.

51% of the space reserved at the end of Q2 is located in Dublin 2 and includes 135,000 sq ft at Fitzwilliam 28, 48,000 sq ft at 20 Kildare Street and 33,000 sq ft at 75 St. Stephen’s Green. Another 13% of the space reserved is in Dublin 1, the largest being No. 3 Dublin Landings, Parnell House and The Heysham.

The top five deals made up 48% of total take-up with demand coming from a wide range of sectors this quarter. That said, the largest two deals were done by companies in the TMT sector (Service Now who took 88,000 sq ft at 60 Dawson St in Dublin 2, and Workday who took 54,000 sq ft at Dockline in Dublin 1). 

Service Now’s decision to take 88,000 sq ft at 60 Dawson St in Dublin 2 was the largest deal of the quarter. The pre-let of this space reflects the demand from occupiers for the best new space coming to the market.

Overall TMT dominated again with 45% of take-up, but the financial services sector was very active taking 28% of space. Waystone’s decision to take 52,000 sq ft at 35 Shelbourne Road in Dublin 4 was the largest deal in that sector.

Overall, the City Centre represented 80% of Q2 take-up and 81% of take-up for the year to date.

Only 15% of Q2 take-up transacted in the Suburbs, the largest being Western Union’s decision to take almost 12,000 sq ft at the Richview Office Park in Dublin 14.

The overall market vacancy rate has remained stable at 10.1% at the end of Q2. This headline rate however is not reflective of what is happening in a post Covid market as demand for the best sustainable space leads the way. Excluding space that is available which has a BER Energy Rating of C and below, the vacancy rate is 5.2%.