Dublin Industrial Market Q2 2020:
The industrial market has proved one of the most resilient sectors during the pandemic. In total, there were 44,611 sq m worth of transactions in Q2, bringing take-up for the first half of 2020 to 131,408 sq m. While this is down 34% on the same period last year, it is above the level achieved in both H1 2017 and H1 2018.
Lettings in Q2 comprised 88% of activity with sales accounting for 12%. The South-West had the highest market share with 60%, followed by the North-West with 38%. The North-East accounted for just 2% of the market.
The lockdown resulted in a significant uptick in online sales which comprised 11.8% of turnover in Q2 – up from 3.7% in Q1 just as the lockdown was imposed and 3.1% compared to Q2 last year. The growth in online sales in Q2 resulted in a number of significant deals with 3PLs. JMC Van Trans took 7,897 sq m at part of Unit F, Kilcarbery Business Park, while GLS logistics occupied 6,528 sq m at Unit 200, Northwest Business Park.
The largest letting in Q2 saw Silent Aire – who manufacture data centre cooling systems – take 13,006 sq m at Unit S1, Park West Industrial Estate which is in addition to the 9,383 sq m that the company took at Unit 56 in Q3 2018. This expansion undoubtedly happened as a result of Ireland’s success in attracting data centre investments. With Host Ireland predicting that Ireland will gain €4.5 billion worth of inward investment from data centre construction by 2025, ancillary industries connected to data centres may become a more influential driver of demand going forward. This was the only deal in excess of 10,000 sq m, comprising 29% of the market.
The 5,001-10,000 sq m and the less than 2,500 sq m segments accounted for 32% each, followed by the 2,501-5,000 sq m range with 8%.