2023-11-20-莱坊-Dublin_Industrial_Market_Q3_2022_2页_96kb

Dublin Logistics and Industrial Market Summary - Q3 2023

Core Content

The Dublin logistics and industrial market experienced a total take-up of approximately 60,000 sq m in Q3 2023, marking the second consecutive quarter of similar activity. This brings the year-to-date take-up to 205,412 sq m, which is 33% lower than the 307,729 sq m recorded in the same period of 2022. The decline is attributed to cautious occupier behavior, influenced by macroeconomic challenges and geopolitical uncertainty.

Despite the subdued transaction volume, the market shows strong demand with a healthy level of reserved stock (over 50,194 sq m) and significant active requirements. If a substantial portion of this demand materializes in Q4, the annual take-up could reach the 5-year average of 314,144 sq m.

Key Market Trends

• Deal Size Distribution:

  • 7 deals (45%) within the 2,501-5,000 sq m range.
  • 3 deals (32%) between 5,001-10,000 sq m.
  • 17 deals (23%) under 2,500 sq m.
  • Average deal size: 2,214 sq m at the end of Q3.

• Location Preferences:

  • South-West region accounted for 54% of take-up.
  • North-West region represented 38%.
  • North-East and South-East accounted for 7% and 1%, respectively.

• Top 5 Take-Up Deals:

  1. 20 Magna Drive, Magna Business Park, Dublin 24 – 7,413 sq m (Confidential tenant).
  2. Unit S2, Park West Industrial Park, Dublin 12 – 6,133 sq m (Silent Aire).
  3. Unit N5, Horizon Logistics Park, Co. Dublin – 5,647 sq m (BCS Xpress).
  4. Unit G1, Horizon Logistics Park, Co. Dublin – 4,401 sq m (Excellence).
  5. Unit 1, Vantage Business Park, Dublin 11 – 4,275 sq m (Heathcare 21).

Investment Activity

• Total investment value in Q3 2023: €86.6 million across 8 deals, representing 19% of overall investment activity in the Dublin market.
• Year-to-date investment: €249.9 million, just over half of the €445.3 million from Q3 2022.
• Top investor: M7 Real Estate acquired €53.0 million worth of assets across 3 deals, contributing 31% of the year-to-date logistics and industrial investment.
• Other notable transactions:
  • Pictet acquired Unit 35, Rosemount Business Park, Dublin 15 for over €14.0 million.
  • Knight Frank represented Pictet in this transaction.

Vacancy Rate and Development

• Vacancy rate: Remained low at 2.0%, driven by an increase in second-hand stock returning to the market, as there were no new completions.
• Development activity: Limited to 103,000 sq m, of which 48% is already let or reserved.
• Outlook: The constrained development pipeline, combined with a steady take-up forecast, is expected to limit the upward movement in the vacancy rate over the next year.

Rental Analysis

Prime Yields

• Prime yields: Stood at 5.00% at the end of Q3 2023.

Outlook

• Rental growth: Prime rents are expected to continue growing, albeit at a more moderate pace, due to ongoing demand and limited supply.
• Long-term trends: The market is expected to benefit from e-commerce growth, supply chain reconfiguration, and the ESG agenda.

Contact Information

• Research:

  • Joan Henry – Chief Economist & Director of Research
  • Robert O'Connor – Associate Director
  • Sean Cadogan – Research Analyst

• Logistics & Industrial Agency:

  • Marcus Bell – Divisional Director & Head of Logistics & Industrial

• Logistics & Industrial Capital Markets:

  • Adrian Trueick
  • Peter Flanagan
  • Ross Fogarty

• Development Land:

  • James Meagher
  • Evan Lonergan
  • Finin O'Driscoll