THE past year has been a very good one in the industrial property market. The number of speculative schemes being started increased significantly as the year progressed. Of particular importance is the number of larger units, with between 20,000 and 40,000 square feet, that are being built speculatively. At present there are in excess of a dozen developments around the city centre where units of various sizes are on offer. This gives the prospective occupier a wide selection in terms of location and specification from which to choose.

The majority of the schemes are located around the M50 motorway between the Naas Road and Tallaght and in the vicinity of Dublin Airport. Rents for the new units range from £5.50 to £6.50 per square foot, depending on the specification of the structure and the office content. Many occupiers are looking for an increasing amount of office space - some now want a content in excess of 50 per cent.

Any existing/older buildings which came on to the market this year sold quickly and at improved prices. The availability of relatively cheap money and the opportunity to get attractive rates, which are fixed for five years, have encouraged many companies to purchase. This is particularly so in the ease of nationals and those which require the smaller units.

Many overseas companies still have a preference for leasing. Most leases now are for 20 or 25 years. Tenants continue to look for break clauses - usually between the 10th and the 15th year and usually with a penalty if the break is exercised.

The prices for new units now range from £50 to £60 per square foot. The difference in price is usually explained by the profile of the estate and the level of the finishes in the buildings.

The value of existing buildings increased significantly this year on the back on an increased demand and a limited supply. Well maintained existing/older buildings now make £35 to £45 per square foot, depending on their age and condition. Some properties in the most popular locations, such as the Sandyford Estate, are now making close to their replacement cost.

The increase in market activity has inevitably affected the price of industrial building land. High profile sites and those with planning permission have made between £175,000 and £200,000 per acre. In a few cases, prices have exceeded this level. Sites which do not have the same profile can be bought for significantly less in some locations.

The opening of the stretch of the M50 motorway between the airport and Blanchardstown will inevitably bring more sites to the market as they become accessible to the main road network. An increased supply of sites will give the potential occupier greater choice at a wider price range. This is likely to stabilise prices - if not exert some downward pressure.

1996 was a very good year for the IDA in its ongoing role of attracting new industry to this country. It succeeded in getting a number of major companies to come here as well as many smaller ones.

Looking to 1997, it is likely that the market will remain strong on the basis that interest rates stay low and the economy continues to perform well. Potential occupiers now have a greater choice than any time since 1990/1991 and developers will have to be careful that the market does not become oversupplied. A scarcity of existing buildings for sale will ensure prices will remain strong over the next 12 months.