The Dublin market saw 1,049,536 sq ft transact in Q2 across 83 deals, marking the first time the million square foot threshold has been breached in this cycle. Take-up for the first six months of the year now stands at 1,491,942 sq ft which is 30% higher than the same period in 2016.
The high level of take-up witnessed during Q2 can be attributed to the flow of new office stock that is now being delivered, which is seeing pent-up demand translate into deals transacting in the market. In fact, all of the top 8 transactions involved new or refurbished office stock. Facebook’s taking of 170,000 sq ft at The Beckett Building in the East Wall represented the largest deal of the quarter, followed by AIB’s letting of 152,000 sq ft at Block H Central Park. Meanwhile, J.P. Morgan’s purchase of the 128,220 sq ft 200 Capital Dock was the first tangible evidence of a ‘Brexit Bounce’. Zendesk’s pre-letting of 57,865 sq ft at the soon to be completed 55 Charlemont and Google’s letting of 51,096 sq ft at the recently completed Velasco Building completed the top five deals. Prime rents remain at €60.00 psf, unchanged from the previous quarter.
While the city centre accounted for 55% of take-up, the Fringe and South Suburbs significantly increased their share of the market relative to the previous quarter with the Fringe market increasing from 14% to 21%, while the South Suburbs rose from 4% to 19%. Suburban and Fringe locations with good transport links are becoming ever more attractive from an occupiers perspective owing to the fact that rents are quite competitive in these locations relative to the city centre. The TMT sector continued to dominate letting activity accounting for 44% of all take-up, just ahead of Finance which accounted for 34%.
With approximately 500,000 sq ft worth of deals already agreed and due to sign, Q3 looks set to be another quarter of heightened activity.