Dublin Logistics & Industrial Market Q1 2023

  • Preference for new buildings continues to lead the demand for logistics space in the Dublin market, representing 76% of space taken in Q1.
  • Just over 85,000 sq m was signed in Q1, representing a strong start to the year. 67% of this was located in  Dublin South-West.
  • Demand for larger spaces continues to dominate activity.  The largest deal consisted of the letting of just under 27,000 sq m at Greenogue Logistics Park to Wincanton.
  • Supply remains constrained as 68% of the space under construction is pre-let or reserved.
  • Prime rents continue to edge upwards, ranging from €129-€135 psm  at the end of the quarter.
  • Despite strong demand and low supply levels, debt market uncertainty and increased costs are expected to hamper the supply pipeline.
  • The same debt market concerns will also inhibit otherwise strong investor demand for logistics and industrial assets and place outward pressure on prime yields, for at least another quarter.

Joan Henry, Chief Economist & Head of Research, Knight Frank Ireland