Take-up in the Dublin office market this year could set an all-time high. This is according to the latest commentary from Knight Frank, which suggests that, due to a number of large deals in the pipeline, "we could yet see 2018 exceed the 3.6 million sq ft recorded last year and set a new record for office take-up in the Dublin market".
The agency reports that “strong demand” in the second quarter of 2018 – with more than 74,322sq m (800,000sq ft) of space transacting – meant take-up in the Dublin market was “broadly in line” with the same period last year.
“With all five of the top transactions in the second quarter involving new schemes that have either been recently delivered or are under construction, the high level of take-up can be attributed to the flow of new stock that is emerging, which is unlocking pent-up demand and translating into deals in the market,” according to Knight Frank.
The largest transaction in Q2 was Google’s purchase of Boland’s Quay in the south docks for about €300 million. Other notable deals were WeWork taking 6,875sq m (74,000sq ft) at One Central Plaza (the former Central Bank on Dame Street) and software provider LogMeIn agreeing terms for 3,735sq m (40,200sq ft) in The Reflector in the south docks.
Interestingly, the State is becoming increasingly active in the market after the IDA agreed to lease the remaining 10,405sq m (112,000sq ft) at Three Park Place on Hatch Street in Dublin 2 for a rent of about 646 per sq m (€60 per sq ft).
