Office Market Update Q1 2022

Our Dublin Office Market Update Q1 2022 is out now. You can read a synopsis below or click to download the full report.

Dublin’s office occupier market has had a very strong start to the year with 471,000 sq ft signed. Global fintech company Fiserv has taken all the space (69,000 sq ft) at 10 Hanover Quay in Dublin 2 which was one of the largest deals of the quarter.

Demand for new space in city centre locations leads the way as large occupiers recognise the need for the best space, with sustainable credentials and close to transport connections, to attract and retain talent. The Shipping Office and The Tropical Fruit Warehouse, two buildings under construction in Dublin 2, are now fully reserved by a tech company while other prime space has been reserved by Professional Services firms. Demand for space in Dublin 1 was also strong accounting for 26% of Q1 take-up (& 21% of the reserved space). 

75% of the new space which is due to be delivered to market throughout the rest of 2022 is pre-let (including space currently reserved). Prime rents have moved upwards to €65 per sq ft. Increasing inflationary pressures will add to costs across the board, including office rents, but it is demand from occupiers seeking the best new space in the city, that is expected to see prime rents move up to €67.50 per sq ft by year end.

At a time of so much global geo-political crisis coupled with risks of spiralling inflation and increased interest rates, Ireland is bolstered by the fact that the economy was in a very good starting position at the beginning of 2022. Employment levels in the key sectors driving economic growth and demand for office space (TMT, Financial Services and Professional Services) are above where they were two years ago and many still have expansion plans.

We forecast that total take-up in 2022 will reach between 2m – 2.5m sq ft, taking it back close to the long-term average.

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

To read the report in full download your copy of the Office Market Update Q1 2022.

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