Dublin, April 5th, 2022 - New research from CBRE Ireland confirms that the industrial & logistics sector continues to outperform all other sectors of the Irish commercial property market with another bumper quarter of occupier take-up and very healthy investment figures recorded in Q1 2022. Indeed, according to CBRE, the industrial sector is well on its way to match and potentially exceed last year’s performance with almost 97,000 square metres of take-up recorded in the capital in the first three months of 2022 alone.
According to Shane O’Connor from the Industrial & Logistics team at CBRE, “Take-up in the Dublin industrial & logistics sector reached 96,563m2 during the first quarter of 2022 of which 32% comprised pre-letting activity, clearly demonstrating the scarcity of modern standing stock. Q1 2022 has been another very strong quarter for this sector, which was the best performing sector of the Irish commercial property market in 2021. In total, 30 individual transactions were signed in the industrial & logistics sector in Dublin during the first quarter of the year, of which 21 comprised lettings and 9 comprised sales. In addition, there was strong investment activity recorded in the sector, building on the momentum experienced in 2021”.
CBRE’s research shows that the Dublin South West (N7) road corridor once again proved the most dominant location for industrial & logistics activity in the Irish capital during Q1 2022, accounting for 39% of occupier transactions completed in the Dublin market during the first quarter of the year. This clearly points to the need to zone sufficient land along this vital road corridor to facilitate future growth in this sector.
According to the property consultants, prime rents for new buildings in the Dublin industrial & logistics market increased during the first quarter of the year to approximately €116.75 per square metre (€10.85 per sq. ft.) and are expected to increase to approximately €118 per square metre (€11.00 per sq. ft.) later in 2022 due to the weight of demand for stock, the scarcity of modern accommodation along with increasing construction costs.
Aside from strong occupier activity, CBRE also report strong appetite from investors for industrial & logistics opportunities during Q1. CBRE say that approximately €178.4 million was invested in industrial and logistics properties during the first quarter of 2022, following a year in which a record of almost €1 billion was invested in this asset class in the Irish market. The volume of capital invested in industrial and logistics investments in Q1 2022 equates to approximately 24% of total investment spend in Ireland in the period.
CBRE U.C., (CBRE Ireland) registered in Ireland, no. 316570. PSRA Licence No. 001528 is the country’s largest commercial real estate services company with offices in Dublin and Cork. Currently employing over 150 employees, we work with occupiers, investors and developers of office, industrial and logistics, retail, hotel and healthcare property, providing strategic advice and execution for property sales and leasing; tenant representation, corporate services; property and project management; appraisal and valuation; development services; investment management and debt advisory; business rates and compulsory purchase and research and consulting. Please visit our website at www.cbre.ie
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com