Office landlords will need to be “more creative in their leasing strategies” over the next few years as a wave of new space comes on the Dublin market this year and next.
That’s according to agent Murphy Mulhall which has just released its latest Market Monitor report. This points to the delivery of 2.8 million sq ft of new office space in Dublin’s central business district (CBD) by the end of 2018 that will herald “a new era” for the capital’s office market.
Murphy Mulhall’s research suggests that 1.2 million sq ft of new office space is due for completion by the end of 2017 and 920,000 sq ft of this is available to let.
Significant year
“The release of this new space, plus another 1.62 million sq ft of new CBD space in 2018, is likely to effect a shift in dynamic,” according to the agent.
James Mulhall, managing director of Murphy Mulhall, says that Dublin's CBD office market has been in need "for some time" of quality new accommodation so "2017 will be a significant year for the office market as it will be the first time in a number of years that demand has been put to the test.
“There is plenty of evidence to suggest the depth of demand is out there, and it is likely that the bulk of lettings will be on a floor-by-floor basis rather than single-let buildings.”
According to Murphy Mulhall’s research, the tech/creative/digital and professional services sector have accounted for 58 per cent of all office take-up for the past five years. “Based on the level of current requirements, this is a trend that is likely to continue,” it says.
