The Irish Times view on the office market: authorities need to scope out the risks

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The tech sector slowdown and the post-pandemic shift to remote working have taken the wind out the market

The most significant of the assets being offered for sale at Elmpark Green is the Seamark building - the sale price is further evidence of the weakness hitting the office marketThe putting up for sale of two Celtic Tiger office blocks on Dublin’s Merrion Road at a deep discount belies the optimistic claim that the slump in the office market here will not be deep or long-lasting.

It is hard to square a price drop of this magnitude with predictions from commercial property agents that the “downswing” in the office market will bottom out next year. The tech sector slowdown and the post-pandemic shift to remote working that have taken the wind out the market are not irreversible trends, but there is little evidence at this stage of a significant about-turn; and even less evidence that either will return to the levels seen before the pandemic.

What is clear is that someone is going to lose money, or already has. The question is who and how much and will it come back to bite the tax payer?

 

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