2023-05-22-莱坊-Dublin_Industrial_Market_Q1_2023_2页_58kb

Dublin Logistics and Industrial Market Summary - Q1 2023

Occupier Market Trends

• Strong Demand: Dublin's logistics and industrial sector saw significant demand in Q1 2023, recording 85,376 sq m of new lettings across 34 deals.
• Unit Type Preference: New build units led demand, accounting for 76% of total take-up. Larger units (>10,001 sq m) made up 44% of take-up as occupiers seek operational efficiencies.
• Location Breakdown: The North-West region (24%) and South-West region (67%) were the primary areas leasing up space, with the South-West being the largest market.
• Top Deals: The largest deal of the quarter was a 26,674 sq m letting at Greenogue Logistics Park (South-West) to Wincanton.

Investment Market Trends

• Investment Activity: Total investment spend in Ireland in Q1 2023 was €114.8 million, with logistics and industrial assets being the second most sought-after asset class.
• Key Transactions: KKR and Palm Capital sold Logistics Park Greenogue to Ingka Investments for €100M (yield 4.30%). Kennedy Wilson purchased a portfolio for €14.8M (yield 5.15%).
• Yields and Rents: Prime yields softened by 25 basis points during the quarter, rising to 5.00%. Prime rents increased, putting price pressure on new developments.
• Supply: A significant supply deficit persists, with 147,000 sq m under construction, 68% of which is pre-committed. This constrains new development starts and keeps a floor on prime rents.

Summary Insights

• The beginning of 2023 was characterized by strong occupier demand, particularly for modern, best-in-class warehouse facilities.
• Investment activity remained focused on prime assets like Greenogue Logistics Park, although logistics yields softened slightly compared to the previous quarter.
• Occupiers' preference for larger units and modern specifications (higher eaves, EV charging, generous yard space) continues to shape the market.

Occupier Market - Q1 2023 Deal Size Breakdown

• 10,001 sq m: 44%

• 5,001-10,000 sq m: 15%
• 2,501-5,000 sq m: 23%
• 501-2,500 sq m: 17%
• < 500 sq m: 1%

Investment Market - Q1 2023 Deal Size Share

• Deal Size (% of Investment Spend):
  • < 501 sq m: 5%
  • 501-1,000 sq m: 6%
  • 1,001-2,500 sq m: 7%
  • 2,501-5,000 sq m: 23%
  • 5,001-10,000 sq m: 15%

  • 10,001 sq m: 44%