2021-06-07-莱坊-Dublin_Office_Market_Overview_Q2_2021_Q2_2021_7页_5mb

Dublin Office Market Analysis: Q2 2021

Market Overview

• Ireland's economy exhibits strong recovery, with GDP expected to grow by 8-11% in 2021 due to pent-up demand post-lockdowns.
• Office market activity is heightened, driven by demand from key sectors, with a vacancy rate of 10.6% in Q2 2021.

Occupier Trends

• Professional Services sector dominates, occupying just under 2 million sq ft and projected to increase market participation.
• Q2 2021 saw take-up of approximately 169,000 sq ft, led by accounting/advisory firms, with sectors like TMT and Finance showing strong activity.
• Challenges from labor and material shortages are delaying completions and acting as a drag on the market into 2022.

Investment Trends

• Investment activity remains robust, with €1.45 billion spent in Q2 2021, bringing year-to-date total to €638m.
• Key deals include the sale of significant properties, such as Irish Life's €164m deal with Deka, reflecting sustained interest from international investors.

Market Outlook

• Outlook is positive, with expected take-up ranging from 1 to 1.5 million sq ft in 2021.
• Prime rents stabilized at €57.50 per sq ft, but potential for yield tightening as capital competition intensifies in the second half.
• New developments focus on high-quality spaces with sustainability features, responding to evolving occupier demands.