A new report conducted by Lisney Property Agents, in conjunction with Cushman & Wakefield, shows that industrial rents in Dublin are now rising at twice the European average, second only behind London’s Heathrow airport.

The study, ‘Industrial Space Across the World 2008’, lists the prime manufacturing locations in 52 countries, shows that Dublin prime industrial rents, at €160 sq m, has now jumped ahead of global capitals including Toyko (€143), Oslo (€134) and Sydney (€133).

Prime industrial rents in Dublin are €124 per sq m per annum but when other costs such as commercial rates and service charges are included, occupancy costs total €160 per sq m.

The study also indicates Dublin’s industrial rents rose by 5% last year, which is twice the rate of rental growth across Europe and almost four times the average in Western Europe, which was just 1.3%.

This means that Dublin is now more expensive than Tokyo and it has become the second dearest manufacturing and logistics location in the world.

According to Dr. John McCartney, Head of Research at Lisney, rental growth is being driven by changing patterns of land use around Dublin.
“Rents have been driven up by tighter supply of industrial space in Dublin.

 This reflects the fact that industrial development is increasingly being displaced by higher end-use value development such as residential, retail and offices in locations close to the city”, he stated.

McCartney also cautioned that high rents are adding to the competitiveness issues facing Irish industry, with the High Level Group’s Report on Manufacturing, published this week, highlighting the greatest challenge facing the sector is a loss of cost competitiveness.

“In addition to the strengthening Euro, high rent levels must have some bearing on the ability of our industrial firms to compete abroad,” he concluded.

Download 'Industrial Space Across the World 2008’ PDF in full at top of the page