Dublin office leasing activity continued to rebound in Q3 2024, with take-up totalling nearly 600,000 sq ft (55,750 sq m), according to CBRE. Notably, they say, take-up in the first three quarters of 2024 has already surpassed that of the full year in 2023.
A further 917,100 sq ft (85,200 sq m) of Dublin office stock is ‘reserved’ and CBRE Ireland is now forecasting that total take-up for the year will exceed 2 million sq ft (185,000 sq m) in 2024, a hugely positive outturn given ongoing questions regarding the potential impact of increased hybrid working on the long-term demand for office space. The 10-year annual average for take-up in the Dublin market is approximately 2.6 million sq ft (240,000 sq m).
The largest deal of the quarter was at Wilton Park, where ‘Big Four’ accounting firm EY agreed a lease assignment from LinkedIn at IPUT’s Two and Three Wilton Park in Dublin 2. It is hugely encouraging to see the continued take-up of ‘grey space’ in the city and Wilton Park will now enjoy an impressive tenant mix of Linkedin, Stripe and EY.
Professional services and financial occupiers continue to actively pursue modern, sustainable office space in Dublin. Other notable deals this quarter included KKR taking additional space at the Cadenza building on Earlsfort Terrace, now occupying 59,000 sq ft (5,480 sq m) in total. While law firm Addleshaw Goddard also signed for 25,000 sq ft (2,200 sq m) at Amundi Real Estate’s Fitzwilliam 28 building in Dublin 2.
The news that technology group Workday has reached an agreement to occupy over 400,000 sq ft at Marlet’s new College Square development off Tara Street in Dublin 2 also provided a huge boost to Dublin office sentiment in Q3. This transaction will also provide a significant boost to take-up numbers subject to the completion of the deal over the coming months. While the Dublin office vacancy rate remains high, the news of this large letting, along with the completion of leasing deals at Wilton Park and the acquisition of the Seamark Building at Elmpark by the HSE earlier in the year, is shrinking the amount of available large-scale, A-rated buildings in the city.
Alan Moran, Head of Office Investor Leasing at CBRE Ireland, commented, “While the market continues to face certain challenges, sentiment in the Dublin market has improved significantly as a result of a number of positive news stories around large-scale lettings of prime, sustainable offices, such as Stripe and EY signing for space at IPUT’s Wilton Park, and the announcement that Workday has chosen Marlet’s College Square development for their new European headquarters. Deal flow and demand are trending positively, and the full-year numbers for take-up in Dublin will reflect this.”