Premium office space in Dublin is expected to continue to dry up in 2025, leading to more competition in the market after a moribund 2024 in which vacancy rates appeared to reach the peak of the current market cycle, HWBC Ireland has said.
In a report published on Tuesday, the property agency said the Dublin market staged something of a comeback in the back half of 2024 and is poised to carry that momentum into 2025.
About 1.2 million sq ft (111,500 sq m) of space has been reserved, a figure that includes more than 39,000 sq m at Marlet’s College Square development in Dublin 2, where discussions are said to be at an advanced stage.
There is now approximately 1.57 million sq m of office space under construction, some 79 per cent of which has been reserved by companies including KPMG, Citi, Deloitte and Google, HWBC said.
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However, with “no new speculative space due for completion from 2027″, the agency said it expects prime space in the city will become “increasingly scarce” from the second half of next year, potentially driving up rates.
Paul Scannell, director of agency and business at HWBC Ireland, said 2024 “delivered a marked recovery for the Dublin office market”.
He said: “As we enter 2025, the pipeline of reserved space points to another strong year, though it’s clear that supply constraints for prime space will start to impact the market.”
HWBC said leasing levels this year are expected to be similar to last year when take-up reached 199,741.5 sq m
Looking outside the city centre, the property agency said the suburban market, which accounted for 25 per cent of take-up in 2024, is expected to see steady activity in 2025, HWBC predicts, as occupiers hunt for bargains.
Iain Sayer, managing director at HWBC, said the agency’s outlook for 2025 is one of “cautious optimism”.
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