RENTS FOR OFFICE space in Dublin could jump by as much as 30% if current trends continue, an independent property firm has warned.
HWBC’s mid year commercial property review found that rents for the most sought-after properties in Dublin have already climbed by 15% so far this year, well in excess of the 10% predicted.
The firm said that supply constraints and high prices would push some clients to the edge of the city centre and even into suburban locations as they continue their hunt for suitable office space.
HWBC investment director Tony Waters said that buildings in the ‘fringe’ locations of Dublin 1, 3, 7 and 8 will become more sought after.
HWBC investment director Tony Waters said “we thought 2014 would be strong, but not as strong as this, and that’s why we have upgraded our full year forecast to 30%.”
The level of choice for tenants seeking more than 2,000 square meters of Grade A space is limited and getting worse. In the near term that will likely drive rents higher, and also mean some tenants look beyond the city centre and consider looking to older Grade B buildings.
Demand for office space in the first half of the year was 95,200 square meters, considerably ahead of the same period for 2013.
Some headline deals for the period include Amazon’s new offices at Burlington Plaza, new digs for Dropbox at 1 Park Place in Dublin 2, and a site for UPS in Citywest.
RIOT Games’ new home in The Observatory and Oracle’s offices in East Point Business Park round out the top five deals in the first six months of the year.
Waters also warned that a shortage of quality offices will have implications for the wider economy “as current and future FDI projects are dependent of a reasonable supply of modern space in the right locations”.
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