- Knight Frank expect total take-up for 2024 to reach between 2m-2.2m sq ft.
- Total take-up for the year to date has reached 1.679m sq ft, in excess of the total signed throughout 2023.
- EY’s decision to take in excess of 130,000 sq ft at 2 Wilton Park was the largest deal of the quarter.
- The absorption of grey space with ESG credentials, along with stronger demand, is having a positive impact on the market vacancy rate which has fallen to 15.1% at the end of Q3, from 15.9% at the end of Q2.
- The overall vacancy rate has now peaked for this cycle, although it may increase slightly by year end as new space which is due to complete and that is not pre-let adds to overall space available.
- Vacancy for ESG accredited space in the city centre has fallen further, with the expected completion of the College Square deal early in 2025 to have a further downward impact on the vacancy rate, particularly in Dublin 2.
- Knight Frank continue to hold the view that as the impact of the tighter supply pipeline becomes evident in 2025, prime rents will rise with more significant increases expected in 2026.
- Investor activity was steady on a quarterly basis with the total spend reaching €591.2m compared to €510.2m in Q2.
- In terms of office assets, spend totalled €141.8m in Q3 which is considerably higher than the €80m that was invested in Q2. The total for the year to date stands at €250.3m or 20% of the overall spend in the Irish market.
- Prime yields remain steady at 5%-5.25% with continued expected ECB rate cuts to support that position.
Joan Henry, Chief Economist & Director of Research, Knight Frank Ireland
