Rents for prime office space in Dublin could rise by as much as 30 per cent this year, according to commercial property firm HWBC’s mid year market review.
The review shows that rates for prime Grade A offices in Dublin City Centre rose 15 per cent in the first half of the year, well in excess of the 10 per cent full year growth that had been anticipated at the start of the year.
Demand for office space in the first half of the year was 95,200 sq metres, which is 50 per cent ahead of the same period in 2013.
US technology firms completed four out of the top five deals. The largest office letting deal in 2014 was Amazon’s occupation of 6,500 sq m in the Burlington Plaza on Burlington Road.
This was followed by Dropbox, which has rented 5,100 sq m of office space on Hatch Street in Dublin 2. Riot Games meanwhile struck a deal for 4,230 sq m in the Observatory building on Sir John Rogerson’s Quay.
"We thought 2014 would be strong, but not as strong as this, and that's why we have upgraded our full year forecast to 30 per cent," HWBC investment director Tony Waters said.
He said the level of choice for tenants seeking more than 2,000 square metres of Grade A space is limited and getting worse.
“This makes Nama’s recent plans to focus on fast tracking development in a Special Development Zone in Dublin’s Docklands all the more welcome,” he added.
