Leasing activity in the Dublin office market surged in the second three months of the year, according to a new study.
The research from JLL Ireland shows that leasing activity more than doubled over the same period last year and, in volume terms, was 335.4 per cent ahead of the first three months of the year, with 919,000 square feet let.
The largest deal in the period involved payments group Stripe, which signed for 156,000sq ft of office space at Wilton Park One, making it the biggest single office leasing since the fourth quarter of 2022 and a multiple of the biggest transaction in the first three months of 2024.
[ Dublin office market to experience further boost in activity by year-endOpens in new window ]
Leasing volumes reached 1.1 million sq ft in the first half of 2024. JLL said that put it in line with long-term averages and just below the 10-year average for the first half of the year.
Education, health and the social sector dominated the latest quarter accounting for almost a third of all leasing activity, with the tech sector next at 27 per cent.
Dublin 2 remains the most active location accounting for 54 per cent of take-up volumes, followed by Dublin 4 at 27 per cent and the M50 South at 10 per cent.
However, vacancy rates in the capital are still elevated at 15.7 per cent. Total vacant supply now stands at 7.6 million sq ft, up 0.3 per cent from the previous quarter. However, stripping out space that is reserved, the vacancy rate drops to 14.7 per cent.
[ Irish commercial property market rebounded strongly in second quarterOpens in new window ]
Niall Gargan, head of research at JLL Ireland, said there would be a drop-off in buildings coming on to the market “especially from around 2027″. Some 3.6 million sq ft of property is currently under construction with 1.6 million sq ft expected to be completed by the second half of this year.
Rents in Dublin city now range from €58 to €62.50 per sq ft in a new grade A building while rents farther from the city centre are being quoted from €27.50 to €32.50 per sq ft, the report said.
“Following a challenging start to the year, the office market in Dublin experienced a significant turnaround in the second quarter, outperforming expectations,” Mr Gargan said. “The leasing activity in Q2 was so robust that the volumes for the first half of the year came close to surpassing the entire annual volume recorded in 2023.”
He said that with a number of sizeable deals expected to be signed in the second half of the year, year-end volumes should comfortably surpass two million square feet.
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