Large-Scale International Logistics Occupiers Continue to Make Long-Term Commitments to Ireland

New research from CBRE Ireland confirms the depth of demand for industrial and warehousing facilities in Ireland from large scale global logistics firms. CBRE Ireland have released their Dublin Industrial & Logistics market report for Q2 2023. The report finds that following a strong opening quarter of activity (85,481 sq. m), Dublin industrial & logistics take-up moderated in Q2, totaling 60,652 sq. m.

Total H1 take-up now stands at 146,133 sq. m. Remarkably, this H1 total is almost exactly in line with the level of take-up recorded at the same point in 2022, which turned out to be the second strongest year on record for the market.

It was particularly encouraging to see several large-scale, global businesses make high-value, long-term commitments to Ireland during the quarter.

American corrugated packaging firm WestRock, who have a market capitalisation of approx. US$7.6bn, signed the largest deal in the quarter. WestRock will vacate several older units around Dublin and consolidate into a new, purpose built, distribution and warehousing HQ at Horizon Logistics Park (10,510 sq. m), which will reach practical completion in 2025. The lease term is 20 years.

The second largest deal of Q2 saw French electrical distributor Rexel Group (market capitalisation of approx. €7.0bn) agree to pre-let Unit G at Mountpark Baldonnell (9,005 sq. m), which will be its new national distribution centre in Ireland.

Danish transport & logistics conglomerate DSV and major Danish shipping company DFDS were also active in the largest deals in Q2.

Rents on prime and secondhand stock in Dublin remain on an upward trajectory. In Q2, for the second successive quarter, prime Dublin rents rose by over 4%, now standing at  €134.55 per sq. m (€12.50 per sq ft). Prime Dublin rents have risen 11% over the last 12 months, with further growth anticipated.

Colin Richardson, head of research at CBRE Ireland said, “the volume of take-up in the Dublin market remains solid, despite the softer economic backdrop, while the size and value of some of the deals completing in the market remains particularly encouraging. Large, global logistics occupiers across a range of sectors agreed long-term deals for new warehousing and distribution space in Dublin in the last three months, making high-value commitments to Ireland in the process.”

According to Garrett McClean, head of the industrial & logistics team at CBRE Ireland, “we continue to record strong occupier demand from both international retailers and third-party logistics providers seeking to expand their distribution footprint in Dublin, with 1.25 million sq ft of new demand recorded within the last three months. Not surprisingly, with a low vacancy rate of only 1.4%, new development continues with a number of schemes due to be launched within the coming weeks, including Chancerygate’s ‘Airport Trade Park’ on the Swords Road; Red Rock Logistics ‘Globe Logistics Park’ on the Monread Road in Naas and Park Developments ‘APEX Hub’ on the Calmount Road in Ballymount, which is the first new logistics park to be developed inside the southern section of the M50 in over 20 years."