2022 ended with strong occupier activity in Dublin’s office market with take-up reaching a total of 2.64m sq ft.
Citibank’s decision to take 300,000 sq ft of new space at Waterfront South Central in Dublin’s North Docklands, was the largest deal of the year.
Financial services companies also took 32% and demand in 2023 will be led by activity in Financial Services and Professional Services (which took 16% of total space in 2022).
2023 is set to be an anomaly as a number of new buildings in the city centre, some of which were delayed due to Covid, are due to complete; at a time when the amount of space available to the market has increased via the grey market.
Prime city centre rents ended 2022 at €70 psf and we expect some downward pressure to €65 psf. Any softening in rents is expected to be weighed against increased funding and construction costs, both of which will remain at higher starting points going forward.
ESG requirements will continue to drive all occupier and investor decisions, which puts a sharp focus on the space in the office market which has the best sustainable credentials.
Joan Henry, Chief Economist & Head of Research