The continuing improvement in the economy has led to a sharp take-up of industrial warehouse space in the Dublin area. A new report by agent JLL shows it recorded 44 new lettings in the second quarter of the year, totalling 65,768sq m (707,922sq ft) – a 39 per cent increase in the three-month period and a 43 per cent uplift compared with Q2 in 2016.
The combined take-up for this year of some 111,000sq m (1.2 million sq ft) is 16 per cent higher than in the same period last year. The report also showed that 66 per cent of the deals were for buildings of less than 10,000sq ft (929sq m). There were also four transactions greater than 50,000sq ft (4,645sq m).
Hannah Dwyer, head of research at JLL, said the industrial market was performing steadily with no real change in sentiment in the last three months. Volumes were expected to remain steady, with a number of clients looking for space. They were on target to achieve a 2.5 million square feet (232,257sq m) take-up level for 2017.
Supply constraints
The report said supply remained the largest constraint. Availability across all locations and in all size categories was limited and there were still only two major schemes under construction in Dublin: Green Reit's Horizon Logistics Park and a Rohan Holdings development at Dublin Airport Logistics Park.
The report said there were a number of schemes in various stages of planning and it was hoped these would progress to the construction stage. A number of industrial occupiers were looking for design and build opportunities for space greater than 100,000sq ft. This demand was coming from existing logistics operators who were amalgamating their portfolios.
JLL said prime rents had increased by 6 per cent in the last quarter and now stood at €8.50/sq ft. There was some evidence of deals signing above this level.
