Gross take-up of industrial space topped 119,000sq m (1.281 million sq ft) in the first half of the year, according to Savills Ireland.

This is down on the same period last year but 23 per cent up on 2014.

A number of residual deals linked to the run-out of the capital gains tax incentive inflated both occupational and investor activity in 2015 figures, so 2016’s take-up figures still look healthy.

Savills says improvements in the consumer economy – increasing the flow of goods passing through it – is driving demand for industrial space.

Gavin Butler, director of industrial at Savills Ireland, says the Brexit referendum could put on hold expansion plans for firms heavily exposed to the UK market.

“But the Irish economy is expected to grow at a robust pace in the medium term,” he says, “and this should result in continued demand for industrial space from those servicing the domestic market.

“This will likely lead to further upward pressure on prime rents and values until such time that new product reaches the market.”