Dublin’s industrial market performed well in Q2 in 2008 although demand is weakening

This is in the context of lower economic growth and tighter lending, according to CB Richard Ellis Q2 Report.

In the last three months of 2008,  48,517 square meters of lettings and sales were signed in the Dublin area.

This brings total take-up in the first six months of the year to almost 110,000 sq m, which is comparable with recent years.

However, sentiment has undoubtedly deteriorated in recent months as a direct consequence of economic conditions (both global and domestic).

As a result, a number of potential industrial occupiers are starting to review their requirements, a trend that has emerged in other occupier markets such as the office market in recent months.

‘While industrial take-up activity has remained relatively healthy during Q2 2008, lease and sale negotiations have become noticeably more protracted,’ the report states.

CB Richard Ellis research suggests that there is currently demand for approximately 420,000 square m of industrial accommodation in the Dublin market versus demand for as much as 480,000 square m three months ago, which they say will translate into weaker letting and sales activity in the industrial sector in 2009.

According to Garrett McClean, Director of Industrial agency at CBRE, "Despite the fact that industrial occupier demand, as in all other sectors of the Irish property market, is showing signs of easing, transactions are still being negotiated and prime rents in this sector have remained stable at approximately €130 per sq m in prime locations".

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