Dublin Office Takeup Set To Surpass 2M SF, CBRE Says
The third quarter saw a continued rebound for Dublin office leasing activity, with takeup totalling nearly 600K SF, according to the latest report from CBRE, meaning takeup in the first three quarters has already surpassed the full-year 2023 figure.
A further 917K SF of Dublin office stock is reserved, and CBRE Ireland has forecast that total takeup for the year will exceed 2M SF. The 10-year annual average is approximately 2.6M SF.
The adviser described this as a “hugely positive outturn given ongoing questions regarding the potential impact of increased hybrid working on the long-term demand for office space.”
The largest deal of the quarter was at Wilton Park, where professional services firm EY agreed to a lease assignment from LinkedIn at Iput’s Two and Three Wilton Park in Dublin 2. Other notable deals in the quarter included KKR taking additional space at the Cadenza building on Earlsfort Terrace, meaning it now occupies 59K SF. Law firm Addleshaw Goddard also signed for 25K SF at Amundi Real Estate’s Fitzwilliam 28 building in Dublin 2.
“The news that technology group Workday has reached an agreement to occupy over 400K SF at Marlet’s new College Square development off Tara Street in Dublin 2 also provided a huge boost to Dublin office sentiment in Q3,” CBRE said in a statement. “This transaction will also provide a significant boost to take-up numbers subject to the completion of the deal over the coming months.”
CBRE added that this large letting, plus the completion of leasing deals at Wilton Park and the acquisition of the Seamark Building at Elmpark by the Health Service Executive, has shrunk the amount of available large-scale, Class-A buildings in the city.
The office accommodation at Block B in Dublin Airport Business Park in Santry is fully let following the agreement of two new leases at the scheme. Insurance broker Arachas has expanded its office operations to 6,700 SF, and Ocean Network Express has agreed to occupy the 3K SF ground floor.
“While the market continues to face certain challenges, sentiment in the Dublin market has improved significantly as a result of a number of positive news stories around large-scale lettings of prime, sustainable offices,” CBRE Ireland Head of Office Investor Leasing Alan Moran said in a statement. “Deal flow and demand are trending positively, and the full-year numbers for take-up in Dublin will reflect this.”
