A handful of significant lettings were done in Dublin’s Industrial market during Q1 2011 against a difficult economic backdrop according to international real estate advisor Savills. The firm reports that demand for space was strongest in the southwest of the city with almost 32,000 sq m (344,445 sq ft) taken up in this area, out of a city total of 48,600 sq m (523,126 sq ft). Significant deals in the southwest include the letting of over 10,000 sq m (107,639 sq ft) to Lidl in Belgard Road and 5,754 sq m (61,935 sq ft) in Naas Road, formerly the Nissan HQ.
A handful of significant lettings were done in Dublin’s Industrial market during Q1 2011 against a difficult economic backdrop according to international real estate advisor Savills. The firm reports that demand for space was strongest in the southwest of the city with almost 32,000 sq m (344,445 sq ft) taken up in this area, out of a city total of 48,600 sq m (523,126 sq ft). Significant deals in the southwest include the letting of over 10,000 sq m (107,639 sq ft) to Lidl in Belgard Road and 5,754 sq m (61,935 sq ft) in Naas Road, formerly the Nissan HQ.
In the northwest of Dublin take-up was restricted to three locations (North City, Plato Business Park and Dunboyne Industrial Estate) and the amount of available space fell by 1.16% compared to the previous quarter, as predicted by Savills.
Gavin Butler, Industrial Director at Savills Ireland, says: “Activity in the Dublin industrial market has been relatively strong in the first quarter and this activity has been driven by an increasing acknowledgement by landlords of the need to attract and retain occupiers. Rent-free periods and flexible lease terms have become commonplace in recent months.
“A significant proportion of industrial properties coming on the market are now through receivers, reflecting the difficulties that a number of companies have experienced and has resulted in banks appointing receivers to dispose of properties to mitigate their losses.”
In all 26 deals were completed in the city in Q1 2011, compared with 19 deals in the previous quarter and 42 deals in Q1 2010 according to the Savills research. The firm suggests that landlords have adjusted to market conditions, allowing deals which were being negotiated in 2009 to complete in early 2010.
Savills reports that the average size of deals completed in Q1 2011 fell significantly compared to Q4 2010 dropping from 3,800 sq m (40,902 sq ft) to 1,800 sq m (19,375 sq ft). Dublin’s overall industrial take-up in Q1 2011 represents a 34% drop in demand compared with the previous quarter according to Savills data.
Joan Henry, Head of Research Savills Ireland, says: “Take up in Dublin in the first quarter of 2011 has dropped compared to the previous quarter and Q1 2010, however it is relatively strong when compared to activity levels in the middle of last year and reflects occupier’s willingness to move premises and avail of better locations, terms and conditions.”