Dublin Office ViewPoint: Dublin Office Supply Update, Nov 2016
Despite reports to the contrary, Dublin has more than enough office stock in the pipeline to cater for any additional demand from Brexit relocations.
Dublin office market extends to > 3.7million m2 (40m sq.ft.) of which > 60% is located in the city centre.
Annual average take-up is approx. 172,000m2 pa (1.85m sq. ft.) & the overall vacancy rate is now in the region of 7.6% which compares well with other competing cities.
As at end Q3 2016, when buildings that are reserved are excluded, there is almost 285,000m2 (1.65 times annual average take-up) of office accom. available to let in the capital, contradicting the view that there is no office stock available.
In addition to the vacant stock, there is 372,637m2 (4m sq. ft.) currently under construction in the city centre in 29 individual schemes of which 22% is currently reserved.
This equates to just over 2 years supply & will add approx. 10% of office stock to the market.
19% of the >372,637m2 is due for completion in 2016 with a further 56% due for completion in 2017.
16% of the stock that is under construction & due for completion in 2017 has already been pre-let.
A further 80,000m2 of new office stock is under construction in the suburbs.
In addition 433,159m2 (4.6m sq. ft.) across 38 individual city centre schemes has a grant of planning permission & could also be commenced if required.
While a further 73,473m2 (790,569 sq. ft.) of city centre stock has applied for planning permission.
In summary, the visibility on potential delivery should give comfort to potential occupiers that Dublin is more than capable of providing sufficient high quality office accommodation if /as required.
Government must now ensure that there is sufficient housing & adequate infrastructure to facilitate this additional demand, if and when it materialises.