John Ring, director of research at Savills Ireland, said that while global conditions remain challenging, multinationals, particularly pharmaceutical companies, still have “significant” space requirements.
“Given the recent slowdown in manufacturing activities and pharma exports, GDP has been revised downwards across a range of forecasting bodies,” he said. “However, pharma exports are still high relative to pre-pandemic with exports values inflated significantly through the pandemic from vaccine production and increased medical production. While these global factors could impact the Irish market in the short to medium term it is not anticipated to cause major disruption.
Construction activity in the industrial and logistics market, meanwhile, reached a record high of 1.2 million sq ft delivered in the second quarter.Savills said that some 79 per cent of anticipated delivery for the year has already been completed with just five units under construction and due to finish by year end.
Provisional vacancy figures, meanwhile, indicate a marginal increase from 1.3 per cent to 1.4 per cent quarter-on-quarter. Jarlath Lynn, director of industrial and logistics at Savills Ireland, said that while vacancy rates had increased slightly, Ireland is in a relatively strong position in a global context. “Structural demand drivers such as population growth and ecommerce will continue to underpin future demand,” he said.
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