Dublin office letting on track for record year, with prime rents now approximately €673 per sq m (€62.50 per sq ft). Just over 150,000 sq m (1.6 million sq ft) of office lettings were signed in Dublin in the first six months of 2017. It took just over 100 office lettings to achieve the 150,000 sq m (1.6 million sq ft) of let space. This a considerable number of lettings in the first two quarter of the year.
The largest recent Dublin lettings have been outside the traditional Dublin core office market. Large lettings signed in the last three-month period was 17,489 sq m (188,250 sq ft) to Facebook at the Comer Group’s Beckett building in Dublin 3, the Beckett building has been vacant since it’s construction approximately 10 years ago. This letting is great news for the area as many felt the building would be vacant for many years to come due to the extremely large floor plans and location. The letting by Green Reit of 14,083 sq m (152,000 sq ft) to AIB at Block H, Central Park, in Dublin 18. Is also a very positive letting outside the core Dublin office market. Block H is a recently constructed office block. The letting has spurred Green Reit to start planning the construction of another block adjoining Block H.
Office take up in 2017 is likely on for a record year, for a number of factors, one; the BREXIT effect, two; continued economic growth, three; the growth in serviced office, four; further investment and growth by large tech multinational expanding their offices in Dublin. However, perhaps the number one factor for the record take up is the fact that much of the construction that started in 2015 and 2016 is now coming on stream.
The outlook for the office market for the next few years would all point to positive growth. However, as always the biggest risks are external factors from the USA or the UK.