• As the economy rebounds, the prospects for the Irish commercial property market are encouraging.
  • Office leasing activity was weak again in Q2 and it will take time for current requirements to translate into completed deals.
  • Prime office rents have now reached a floor at approximately 11.5% below peak levels, with rental inflation on the horizon in 2022.
  • €170 million of hotel trades completed during the first half of 2021, up from €127 million in H1 2020.
  • Large pre-lettings of new buildings as well as sales and lettings of existing facilities have been boosting activity in the industrial & logistics sector.
  • Several retailers have yet to negotiate arrangements with landlords regarding rent arrears that have built up.
  • Some signs of improved interest in retail investment opportunities in recent months.
  • While much of what traded in the first half of 2021 comprised multifamily assets, the office sector is expected to dominate investment in H2.
  • International investors are understandably frustrated by recent targeted planning and taxation changes implemented by the Irish Government.
  • Viability of purpose-built product compromised outside of Dublin despite evidence of demand for a multifamily offering in some of Irelands’ regional cities.
  • Heightened uncertainty in the development sector of the market with pricing of unconsented land proving extremely challenging.
  • Spend on healthcare assets to increase further in the second half of the year as several off-market transactions complete.
  • Negotiations on a number of large office lettings are now nearing completion in the Cork market.