Two-tier market for Dublin office space

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The BNP Paribas Real Estate Ireland report shows rents for brand new buildings in prime locations are now rising again, but increasing vacancy is dragging on older buildings which represent most of Dublin's office stock.

The latest BNP Paribas Real Estate Ireland report shows that rents for brand new, high-spec buildings in prime locations are now rising again, having been temporarily set-back by Covid-19.

BNP Paribas said that while the overall trend is improving, office take-up rates remain well down on historical averages.Over 100,000 square metre of new space has already been delivered since January and around 240,000 sq m is expected in the full year. This will make 2022 the biggest year for Dublin office completions since 2008.

"Occupier demand is concentrated on new, sustainable offices with the relevant environmental accreditations. Because there are relatively few of these buildings, prime headline rents are edging-up, and we expect more growth as the year progresses," Keith O'Neill, Director of Office Agency at BNP said.

 

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