Workthere, a leading serviced office advisory and part of property advisor, Savills Ireland, has reported a significant industry shift in Dublin’s flexible office market, with professional and financial services overtaking tech for take-up of space.
In 2022, professional and financial services accounted for 40% of deals, with tech at 45%. This year has witnessed a notable shift with professional and financial services leading deals signed YTD at 57%, and technology companies at 30%. This reflects a changing perspective, highlighting flexible office solutions as a viable real estate option not just for technology companies or start-ups but across all industries.
Kim Hogan, Head of Workthere Ireland, commented:
“The nuanced changes within the flexible office sector, especially in this transformative business environment, underline the agility and momentum of the industry. Dublin, especially the Dublin 2 area, remains attuned to the evolving demands of the modern workforce, epitomising adaptability in response to the transforming landscape.”
Key Market Insights:
- Industry Shifts: In 2022, professional/financial services accounted for 40% of deals, with tech at 45%. This year j has witnessed a notable shift with professional/financial services leading deals signed YTD at 57%, and technology companies at 30%. This reflects a changing perspective, highlighting flexible office solutions as a viable real estate option not just for technology companies or start-ups but across all industries.
- Client Demands Evolving: Alongside seeking collaborative environments, there’s a heightened emphasis on strong public transport links. Clients are progressively seeking meeting rooms with high quality soundproofing and AV equipment, collaborative spaces, and robust connectivity.
- Focal Point – Dublin 2: Dublin 2 is evidently emerging as the hub with 66% of deals signed In core Dublin 2 year to date, a significant increase from last year’s 38%.
- Amplified Average Term: Historically typical flexible office terms were 6 – 12 months but this has been increasing year on year and now stands at 21 months, up from 17 months in 2022.
- Desk Rates on the Rise: Reflecting the heightened demand for flexibility, the average desk rate in D2 has seen an increase, now averaging €610 (ex VAT) YTD, up from €590 last year.
