Demand for Dublin office space is expected to decline due to the weakening domestic and global economic conditions, according to a report from property consultants CB Richard Ellis.
Although office lettings "performed surprisingly well" in the second quarter, sentiment has weakened and office occupiers were "starting to review their requirements".
This will lead to weaker letting activity next year, the report found, although it added that, as yet, there was no sign of a fall in prime rents.
An apparent shift in preference away from the city centre to the suburbs materialised during the second quarter. While more than half of all lettings over the period were in the city centre, a number of larger lettings were based in the suburbs.
"This suggests that some occupiers are considering locations in more cost-effective locations and or properties in an effort to contain costs in this uncertain economic climate".
Marie Hunt, director of research at CB Richard Ellis said a number of potential occupiers were putting expansion and re-location plans on hold.
During the second quarter 71 per cent of office rental in the capital were lettings to business services companies, with 11 per cent to the public sector. Only 5 per cent were to financial firms.
