The Dublin Office Market Research Q2 2022 is out now. Download the report here.
The economic backdrop has become yet more complex, with spiralling inflation and higher interest rates adding a note of caution to investors and additional scrutiny to occupiers’ decision-making processes and choices re space.
That said, there has been just under 1m sq ft of office space agreed in the first half of the year and with 1.4m sq ft currently reserved the market is on track to see between 2.2m and 2.5m sq ft taken up for the year as a whole. Employment growth over the last twenty-four months is supporting demand as is the fact that the Irish economy continues to expand despite the global backdrop.
Occupier demand for the best space with sustainable credentials, close to transport links is driving demand and while the overall market vacancy rate remains at 10.1% at the end of Q2, our analysis of energy ratings for all the available standing stock, shows that buildings with energy rates in the upper tiers (with A and B BER ratings), reflects a vacancy rate of 5.2%. Demand for this space will continue to lead activity, with prime rents to touch €70 per sq ft by year end.
Joan Henry, Chief Economist & Head of Research, Knight Frank Ireland