Strong exports and consumer-driven imports have combined to force more goods through the economy and this is driving the demand for warehousing space. Gross transactions in the industrial market topped 141,000 sq.m. in Q3, bringing total take-up for the first nine months of the year to over 360,000 sq.m. – almost double 2014 equivalent. Approximately 97,000 sq.m. (68%) of the space taken up in Q3 was acquired through outright sales. Indeed, sales have now outstripped lettings for seven consecutive quarters. This reflects the fact that, despite a 17% pick-up in capital values since their lowpoint in Q3 2013, industrial units can still be acquired at a significant discount to reinstatement costs. Southwest Dublin continues to lead the way, accounting for 53% of transacted space in Q3, while 21% and 23% of total activity took place in the Northeast and Northwest corridors respectively.
Source : Savills