A climbing demand for office space in Dublin means that rents could rise by as much as a fifth this year, Savills claims.
According to independent.ie, during the first three months of the year, lettings in the office market increased by almost a third in comparison with the same period the previous year. Of the 57,000 sq ft rented between January and March, nearly three-quarters of the space was in central Dublin. Around 55 per cent of last quarter’s rents were in the Dublin 2 and 4 postcode areas.
The growth in demand is making it more difficult for businesses to acquire Grade A office space in the most sought-after centre locations though, so more firms are starting to look for high quality suburban spaces instead, reports irishtimes.com.
Demand is so high due to significant growth in office-based employment in sectors such as professional services and IT. Director of research at Savills Ireland, John McCartney, notes that new expansions are increasingly replacing businesses wishing to relocate their office to somewhere else.
“Ireland has staged a remarkable labour market recovery with over 63,000 additional jobs created in the last two years,” he says. “Half of these have been in Dublin and, of these, approximately half have been in ICT and professional services.
“These trends are reflected in the pattern of office take-up, with ICT and professional services firms accounting for almost 55 per cent of Dublin lettings in Q1 2014.”
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.