| According to Jones Lang LaSalle (JLL), we are entering a very sensitive period for global markets, and Ireland’s close links to the UK is of concern from an economic perspective.
It is too early to predict how Brexit will unfold and what its longer-term impact on the Irish economy will be, however there may be some wins for Ireland in the short-term. Ireland is well positioned from an occupier perspective to benefit from some of the post-Brexit uncertainty, and we are expecting to see a positive short-term bounce in demand from occupiers. A key question that a number of our clients are asking us at the moment is: ‘Is there enough existing and pipeline space to allow Dublin to accommodate an increase in demand?’ Existing Stock In the last 5 years, we have seen the vacancy rate fall from 23.6% to 6.7%.
This is significantly below the European average of 8.6% and is the lowest vacancy rate the Dublin market has ever seen. The vacancy rate in the city centre is even tighter than this at 3.3% and for new occupiers looking to enter the Dublin market, or for existing occupiers looking to expand, there is very limited choice of existing buildings available. In the city centre, there are no buildings completed and available with vacancy greater than 45,000 sq ft. In the suburbs, there 3 buildings available in this size category, offering slightly more choice to occupiers who are looking for an out-of-town location.
The sharp fall in vacancy is not just a result of no construction activity, but also a result of strong take-up. This has averaged 2 million sq ft per annum for the last 10 years and has helped to occupy the over-supply of accommodation that was built during the boom. In 5 years (2011 – 2015), not a single new office building was completed.
For a more extensive article see our July/August 2016 Issue of Irish Construction Industry Magazine available on subscription, contact Linda Doran firstname.lastname@example.org