CBRE Ireland Releases Key Cork Real Estate Market Research

Commercial property specialists CBRE Ireland today released a report detailing the recent performance of Cork’s commercial real estate market and what makes Cork an attractive location for investment in the future.

Key details from the report:

The CBRE Ireland Case for Cork 2024 outlines the key dynamics across the region’s economic, commercial, residential and development markets.

• Cork city and suburbs could see population growth of up to 50% by 2040;
• Balanced regional development is a key strategic priority for the IDA and Cork attracted some notable FDI in 2023 and in the opening months of 2024;
• Thermo Fisher, Rubrik, PepsiCo, AMD and PwC all making new investments or announcing job creation;
• Cork’s industrial and logistics market is experiencing a supply/demand imbalance, which is evident in the sub-1% vacancy rate the market is experiencing currently;
• Industrial and logistics rents are growing fast, now standing at €12.50 per sq ft (an increase of 25% since the start of 2022), with rents of over €13.50 per sq ft required for construction to commence on modern, sustainable, build-to-suit facilities;
• Cork’s hotel market benefits from domestic and international tourism, with occupancy averaging over 80% and the average room rate now €152;
• Cork was one of the few markets to see growth in investment volumes in 2023, with investment spend reaching almost €190m;
• Two notable retail investment transactions concluded in 2023, Douglas Village Shopping Centre and Douglas Court Shopping Centre, for sale prices of €23 million and €21.5 million respectively;
• Both the rental and housing market are experiencing a supply/demand imbalance, resulting in an increase in rents and house prices;
• Development land sales rebounded in 2023 from the low levels seen in 2022, with notable transactions such as 73 acres of residentially zoned land at Maglin in Ballincollig (sale price approx. €15 million).

According to Denis O’Donoghue from CBRE’s Cork office, “Cork remains an attractive location for developers and investors. Warehousing and distribution facilities in Cork are in high demand, which is reflected in the record low vacancy rate of just 0.7% and the market is seeing exceptionally strong rental growth. Given the nature of the supply/demand imbalance in the residential sector and the various government initiatives aimed at stimulating the supply of housing in the city and county, we continue to see strong interest for sites with residential development potential.”

Emer Geissel, analyst on the research & consultancy team at CBRE Ireland said, “Cork attracted strong levels of real estate investment in 2023, with notable transactions including the sale of 1 Westfield, a community care centre in Ballincollig for €31 million, the sale of Douglas Village Shopping Centre for €23 million and Douglas Court Shopping Centre for €21.5 million along with a number of off-market residential investment deals. Investors continue to view Cork favorably, particularly opportunities in the living sectors, logistics, and out of town retail, as reflected in transactional activity last year.”