Q1 2022 was the strongest opening quarter in five years for take-up of space across Dublin’s industrial and logistics market. The total amount of space occupied in Q1 was 89,036 sq m, with demand for space in excess of 10,000 sq m accounting for 35% of take-up.
The lack of space and development opportunities in the market is driving robust rental growth. Prime rents have risen by 9% during the past year and now stand at €118 psm. Given that one third of the 122,500 sq m of space that is due to complete by the end of 2022 is already pre-let, there is likely to be upward pressure on prime rents throughout the rest of the year.
€178.4m was invested in industrial and logistics assets nationwide in Q1 or 23% of the total spend on Irish investment property, making it the second most sought-after asset class after PRS on 31%. €49.7m of this was invested in Dublin. Prime yields stood at 4.00% in Q1, on a par with prime office yields. Strong demand for assets from both new and existing investors is expected to result in downward pressure on prime yields throughout 2022.
If you would like to discuss this report,
you can contact
Joan.Henry@ie.knightfrank.com
or
Robert.OConnor@ie.knightfrank.com