Strongest Quarter on Record for Dublin I&L Take-Up

Q3 was a record quarter for take-up activity in the Dublin I&L market. The occupational market is now as strong as at any point in history. Demand continues to grow, availability is tight, and rents are rising. Take-up in Q3 was driven by pre-letting and build-to-suit activity, which accounted for 63% of all space taken in the quarter, including eight of the top ten deals. In one of the most notable deals of the quarter, Danish shipping conglomerate Maersk agreed to pre-let over 250,000 sq. ft of space across Unit 3 & Unit 4 at IPUT’s ‘Quantum Logistics Park’ in North Dublin.

Against this positive backdrop, the macroeconomic environment is changing, inflation persists, and interest rate increases have put outward pressure on yields which expanded by 25 basis point to 4.25% in the quarter.

Head of industrial & logistics at CBRE Ireland, Garrett McClean commented, “we continue to see strong occupier demand for modern industrial & logistics facilities throughout the Dublin region and this is reflected in the record quarter of take-up in Q3. While there remains a shortage of available stock, we have been active in advising on pre-letting and build-to-suit transactions alongside traditional leasing activity. It is encouraging to see a strong pipeline of under construction stock that should reach practical completion in the coming months, and this will lead to continued momentum in leasing activity into Q4.”