With Dublin's industrial market bouncing back after little or no new developments over the past eight years, market leaders Rohan Holdings have commenced construction of a substantial warehouse beside Dublin Airport for UK health food retailer Holland & Barrett.
H&B have agreed a rent of €9.55 per sq ft (€102 per sq m) for the bespoke 66,000sq ft (6,131sq m ) warehouse in Dublin Airport Logistics Park which will enable the company to support its growing retail store numbers across the country.
Rohan Project Management, a specialist in-house project management, is to deliver the building by May next under a 25-year lease with a break option in the 15th year.
Similarly, pharma giant Uniphar is understood to have leased a new 90,000sq ft (8,361sq m) building close to Baldonnel airport on broadly similar rental terms. .
The two lettings are being hailed as a turning point for an industrial market which has been largely dysfunctional in recent years from a development perspective, with rents frequently below replacement values of around €9 per sq ft.
The recovery is bringing prime industrial rents to €8.75 by year-end, and the indications are that a return to market normality above this figure is on the cards for next year.
Rohan already has a new 30,000sq ft (2,787sq m) warehouse in the Dublin Airport Logistics Park available to let a €8.95 per sq ft.
Rohan has built over a dozen business parks in the Dublin area in the past 40 years, and is geared to deliver in excess of 250,000sq ft of warehousing and logistics space in the next 18 months. The company recently secured planning permission for six new buildings ranging in size from 10,000sq ft to 60,000sq ft. Main contractors are currently tendering to develop these.
The company, led by managing director Jamie Rohan, is also to begin marketing SouthWest Business Park which adjoins City West Business Campus, and will be in a position to deliver up to 350,000sq ft of new warehouse and industrial space.
