- Just 41,165 sq m transacted in Q1 in what was the weakest opening quarter of the last five years. Economic headwinds and operational cost pressures have resulted in transactions taking longer to complete.
- However, the improving economic outlook and a number of long-term structural tailwinds should result in demand picking up during the rest of 2024 and remaining robust over the coming years, albeit at a more moderate level compared to the 2020-2022 period.
- Sports Direct’s design and build agreement for a new 26,013 sq m unit at Dublin Airport Logistics Park was the largest transaction of Q1 accounting for 63% of take-up.
- Aside from this, transactions were predominantly smaller in nature (Deals of 2,500 sq m or less in size accounted for 72% of take-up) and concerned second-hand stock (None of the units that signed had a BER rating of C1 or above).
- Supply is tight with the vacancy rate remaining in the region of 2%. Further increases will be constrained by the limited development pipeline with just 119,000 sq m under construction of which 39% is pre-let or reserved.
- Prime rents remained stable at €140 psm in Q1. The outlook is one of further growth, but at a more moderate pace than what was witnessed in 2023.
Robert O’Connor, Associate Director, Research,
Knight Frank Ireland
