Confidence returns to Dublin office market in Q1 2022 | Irish Building Magazine.ie
Confidence has been restored in the market in the face of the hybrid model becoming a fundamental part of the modern workplace. Over 1.18m² of square feet are currently reserved with 23 requirements for space over 50,000 square feet. The occupants, who were initially expected to downsize, are now choosing to retain and expand their existing stock due to changes in attitude. The office is now seen as a communal space, designed to be a space for collaboration and a respite from the “work from home” model.
Conor Fitzpatrick, Partner in JLL’s Office Agency team, said: “It is extremely encouraging to see the ever-increasing signs of recovery and tenants’ appetite for best-in-class buildings that can meet their ESG objectives and health and welfare requirements of their staff. With a strong pipeline of high quality properties and the demand to occupy them, the Dublin office market appears to be in good shape.
Take-up in the city center once again exceeded that of the outskirts with a margin of 82%/18% in volume. Dublin 2 remains the best performing submarket with 54% of overall take-up, double Dublin 1 with 27%. Technology once again dominated the market. The sector accounted for 53% of take-up, which is above the 10-year market average of 42% and the sector also accounts for 35% of all active take-up.
Sustainability will be a key issue for landlords and tenants. The office has become part of a company’s brand and is linked to its sustainability goals. This led to many flocking to a high-quality space that weighed favorably towards a Category A space with support of 90% Category A, 8% Category B, and 1% Category C. As the pandemic remains fresh In spirit, high-quality office space is also in demand as occupants seek spaces capable of being Covid-19 compliant with contemporary spacing and ventilation systems.
This increase in demand for high-quality spaces should push prime headline rents to new records of €65 to €70 by the end of the year.