More Flexible Working Practices are Driving Higher Demand for Serviced Offices

Commercial property specialists CBRE Ireland today released a report detailing the recent performance of Dublin’s flexible (serviced) office market. Despite softer sentiment within the office market generally, the serviced/flexible office sector in Dublin is bucking this trend and achieving strong take-up, rents, and lower levels of vacancy. As part of the research, CBRE Ireland surveyed the leading flexible office operators in Dublin.

Key details from the report:

• The evolving, more flexible nature of the modern workplace has resulted in more Dublin office occupiers seeking flexible, short-term office real estate solutions.
• Higher fit-out costs and financing costs are also pushing occupiers away from making larger, long-term real estate decisions that require capital expenditure at this point.
• Flexible, cost-effective, short-term arrangements are an ideal solution.
• Despite softer sentiment within the office market generally, the serviced/flexible office sector in Dublin is bucking this trend and achieving strong take-up, rents, and lower levels of vacancy.
• CBRE Research has held discussions with and surveyed the leading flexible office operators in the city in relation to key metrics in their market.
• The vacancy level among these operators' portfolios at the end of December 2023 stood at 7% in the core city centre locations of Dublin 2 and 4, while rents of €600-€900 per desk per month are being achieved for prime space.
• Further serviced office supply is due to come available in 2024 with the launch of several new schemes totalling a combined 9,383 sq m (101,000 sq ft).

According to Megan Burke, Director of the CBRE Ireland Flexible Offices team, “contrary to the broader challenges the Dublin office market is facing, Dublin flexible office operators are performing well. Dublin-based operators are seeing strong take-up and demand and low vacancy levels. Given the increased flexibility being offered by employers, we expect this trend to continue. We are seeing strong interest from current operators seeking to grow their presence in the market, traditional landlords seeking to establish flexible office operations, and new operators seeking to establish operations in Dublin.