Dublin industrial and logistics leasing activity dips on Q4 but still ‘strong’

By James Wallace - Friday, April 13, 2018 11:22

Main news image
Industrial and logistics leasing activity in Dublin reached almost 72,000 sq m in the first quarter, a slight decline Q4 2017, but a considerable 41% year-on-year rise in activity, according to figures from CBRE Ireland.

David Scully from the Industrial & Logistics team at CBRE Ireland, said: “Occupier demand remains strong in this sector.”

According to CBRE Research, 58% of the total volume of industrial take-up recorded in Dublin in Q1 2018 comprised lettings (35 transactions) with 21 of the 60 transactions signed in the period comprising sales. Prime industrial rents rose quarter-on-quarter and now stand at €102.20 per square metre (€9.50 per sq. ft.).

Transactional activity for the same market segment included 56 deals in the three months to the end of March. Activity in the industrial sector during Q1 2018 was primarily focused on the Dublin South West (N7) corridor, which accounted for 36% of all sales and lettings completed in Dublin in the three-month period. A further 27% of the industrial accommodation that either let or sold in Dublin during Q1 was located along the Dublin North East (M7) corridor while a further 10% was located along the Dublin North West (N3) corridor.

Appetite for good industrial investment opportunities remains strong, buoyed to some extent by rental growth expectations in this sector. However, supply remains constrained, particularly for larger lot sizes. Indeed, according to CBRE, of the almost €930m invested in Irish income-producing assets with a value of more than €1m in Ireland during Q1 2018, only 1% comprised industrial investments specifically which is frustrating for the many investors keen to invest in this sector.

James Wallace is a freelance consultant and can be reached via Linkedin or email: jawallace32@gmail.com

Get in Touch
+44 203 205 4600