An ongoing development boom that will deliver some 2.8 million sq ft of new office space In Dublin’s CBD by the end of 2018 represents a new era for the city’s evolving office market.
According to Murphy Mulhall’s latest research bulletin, Market Monitor, there is some 1.2 million sq ft of new office accommodation due to complete in Dublin CBD by the end of 2017, of which 920,000 sq ft remains available. The release of this new space, plus another 1.62 million square foot of new CBD space in 2018, is likely to effect a shift in dynamic.
In recent years Dublin’s office market has been characterised by a relative lack of supply against a backdrop of sustained demand. This has meant that prime rents in Dublin’s CBD have held up in recent years, notably reaching record levels of €65 per sq ft.
James Mulhall, managing director of Murphy Mulhall, said: “For some time now the market has been in need of quality new accommodation and Dublin’s landlords have responded with some great schemes that will play a vital role in making sure the city remains competitive as a global business hub.”
He continued: “2017 will be a significant year for the office market as it will be the first time in a number years that demand has been put to the test. There is plenty of evidence to suggest the depth of demand is out there, although some landlords may need to be more creative in their leasing strategies and it is likely that the bulk of lettings will be on a floor-by-floor basis rather than single-let buildings.”
According to Murphy Mulhall’s research, the tech/creative/digital (TCD) and professional services sector have accounted for 58% of all office take-up for the past five years (2012-2016). Based on the level of current requirements, this is a trend that is likely to continue. This continued demand, along with the potential for positive fall-out from Brexit related relocations will be a significant factor in the continued evolution of Dublin’s office market.
Murphy Mulhall is a full service commercial agency and an International affiliate of Gerald Eve for the Irish market.