With warehouse rents in Dublin down by 60 to 80 per cent, it is now more economical for international retailers to ship larger deliveries into the Irish market rather than a series of smaller shipments, according to Savills.

Gavin Butler of the agency said that with prime rents now ranging from €43 to €65 per sq m (€4 to €6 per sq ft) and tertiary rents as low as €10.76 per sq m (€1 per sq ft), retailers were in a position to follow the example of Lidl and Primark and cut annual delivery costs by shipping larger volumes and leaving stock in warehouses until it was needed.

With about 1.35 million sq m (14.5 million sq ft) of vacant warehouse space in Dublin, Savills does not expect prime rents to rise until at least 2013 or 2014. Secondary rents are likely to remain at their present level until 2015.