The following report incorporates a detailed overview of the regional office markets including Dublin, Galway, Cork and Limerick. This market analysis covers occupation levels, vacancy levels and rental performance in each location.
The recovery of the Irish office market continued to gain momentum over the course of 2013; however it is taking place at different speeds across the regional centres. The Dublin office market continues to lead, with the recovery firmly entrenched, whilst the Cork market is leading the recovery outside of the Capital.
2013 saw both the Dublin and Cork office markets witness strong performance for the year as a whole. Performance in the Limerick market lagged somewhat, however the latter part of the year witnessed a notable increase in transaction activity. Conversely, the Galway market experienced subdued activity during the twelve month period.
On a positive note, approximately €780 million worth of office assets transacted in Ireland in 2013.
Availability levels remain high across the regional centres, particularly in the Cork and Limerick centres. That said, vacancy levels in the Galway office market remain the lowest of all regions. Supply levels, however, continued to recede in the Dublin CBD region resulting in upward pressure on rents in 2013. Rents have remained relatively stable across the other centres.
A trend that continues to prevail across all the office centres is a shortage of good quality large office floor-plates; particularly in city centre locations. An occupier with a requirement for Grade A, city centre accommodation, greater than 5,000 sq m is limited to just two buildings across all regional centres.
On a further positive note, 2013 saw cranes re-emerge on the Dublin skyline with two speculative developments commencing construction in the final quarter. Furthermore, while development activity remains limited across the regional centres, pipeline projects are already confirmed for the Cork and Limerick markets in 2014.
Source : DTZ (Groupe UGL)