Public sector ‘dominates’ Cork office market amid HSE expansion

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Rents remain ‘stable’ despite elevated vacancy rate, says Savills Ireland

The HSE has agreed to take up 64,000 sq ft at the scheme, which had been vacant since its completion in 2019. The agency also acquired 35,200 sq ft at the University Technology Centre between over the period.Will ending the 9% VAT rate spell disaster for the hospitality sector?Overall, Savills said a total of 27 deals were completed in the first half, up from 19 last year while take-up jumped more than 19 per cent and more than 196,400 sq ft of space leased.

With the HSE’s activity accounting for more than half of leasing activity in the first six months, the public sector remained the dominant player in the Cork office market. “The dominance of the public sector, combined with the emphasis on energy efficiency and sustainability, showcase the maturity and future-readiness of the market,” said Sheila Madden, research analyst at Savills Ireland. “The consistent take-up, rental stability, and anticipated growth paint a positive picture for Cork as a competitive office hub.”

Shaking off the impact of the pandemic, Cork’s office development pipeline “shows promise”, according to the report. Some 128,200 sq ft is expected to complete at Horgan’s Quay, a joint Clarendon Properties and BAM Ireland project, by the end of the year and a further 3.1 million sq ft in projects has been proposed.

 

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