DUBLIN OFFICE MARKET REVIEW AND OUTLOOK 2018 - RESEARCH
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RESEARCH DUBLIN OFFICE MARKET REVIEW AND OUTLOOK 2018 OCCUPIER TRENDS INVESTMENT TRENDS MARKET OUTLOOK
SUMMARY REVIEW AND OUTLOOK 2018
Total space let across the top ten deals in 2017
1. Ireland was the fastest growing exceeded the combined top ten deals completed
economy in Europe for a fourth
consecutive year in 2017 as the
between 2009 and 2016 as new supply unlocked
economy expanded by 7.3% pent-up demand.
2. Take-up
reached 3.6 million sq ft
in 2017 – the highest level ever Economy matching the new office space supply of
1.9 million sq ft delivered in 2017.
A pick-up in economic growth and the
3. Prime Grade A rents finished 2017
at €62.50 psf
continuation of an accommodative
monetary policy will support investment
Occupier market
flows to European real estate in the 2017 saw the highest level of activity
coming year. Data from Eurostat ever recorded in the Dublin market,
4. P
rime yields compressed to
shows that the European economy with 3.6 million sq ft let as the market
4.00% by year-end, down from expanded for the fifth consecutive year.
expanded by 2.5% in 2017, outpacing
4.50% at the start of the year While robust levels of letting activity were
the United States which grew by 2.3%.
The rosier backdrop on the continent
5. 1.9 million sq ft of office space was added further impetus to the domestic
FIGURE 1
completed in 2017 with 2.7 million performance in 2017 as Ireland was the
Take-up by location, 2017
sq ft projected for 2018 fastest growing economy in Europe for
a fourth year in a row according to the 5% WEST
European Commission. SUBURBS
2% NORTH
While growth is expected to moderate FRINGE
SUBURBS
SOUTH
from the 7.3% recorded last year to SUBURBS 13%
4.4% in 2018 and 3.1% in 2019, Ireland
will remain in the upper echelons of the
19%
European growth table in the coming
years. The labour market edged closer to
full employment in 2017 as the circa
50,000 new jobs created brought the
unemployment rate to 6.2% at year-end. CITY CENTRE
According to our calculations and 61%
factoring in depreciation of existing stock,
this will have resulted in office occupier
demand arising from jobs growth Source: Knight Frank Research
Top 5 office leasing transactions, 2017
Qtr Property Tenant Sector Size
(sq ft)
Q4 One Microsoft Place, Leopardstown, Microsoft TMT 300,000
Dublin 18
Q4 100 & 300 Capital Dock, Sir John Rogerson’s Indeed TMT 211,393
Quay, Dublin 2
Q2 The Beckett Building, East Wall, Dublin 3 Facebook TMT 170,000
Q2 Block H, Central Park, Dublin 18 AIB Finance 158,000
Q4 One Wilton, Wilton Terrace, Dublin 2 LinkedIn TMT 152,000
Source: Knight Frank Research
2DUBLIN OFFICE MARKET REVIEW AND OUTLOOK 2018 RESEARCH
observed throughout the year, the final as many of the major players here
FIGURE 3
quarter witnessed an average deal size continue to expand and also as some
Dublin prime office rents
of 23,852 sq ft – well over double the of the US companies which might have € per sq ft per annum
norm for a typical quarter – as a number landed in London will now look to Dublin
of large deals transacted. In fact, total as their base for Europe as a result of €70
space let across the top ten deals in 2017 Brexit. We also expect to see an increase
exceeded the combined top ten deals in the number and size of deals that will €60
completed between 2009 and 2016 as be done as a direct result of Brexit in
€50
new supply unlocked pent-up demand. the financial and professional services
sectors with the likes of Morgan Stanley, €40
The demand was mainly driven by
Bank of America, CITI and Goldman €30
the TMT (Technology, Media and
Sachs all having declared their intention
Telecommunications) sector which €20
to expand their presence in Ireland.
accounted for 51% of take-up with
The vacancy rate declined by 0.1% in Q4
Microsoft’s occupation of their new €10
to stand at 7.2% at year-end, down from
300,000 sq ft campus in Leopardstown
7.7% at the beginning of the year while €0
and Indeed’s taking of 211,000 sq ft at
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
rents grew from €60.00 to €62.50 psf
the soon to be completed Capital Dock
over the period.
the largest of these. LinkedIn, Facebook Source: Knight Frank Research
and Google also substantially increased
their footprint in 2017. Development market Hibernia REIT’s 1SJRQ will further
While TMT was the standout performer, The recovery of office development enhance the appeal of the south
there was an increase in activity across activity continued in earnest in 2017, with docklands. Additional space will also be
the market, with the Finance and State 1.9 million sq ft of office accommodation delivered in suburban locations including
sectors also performing particularly delivered, the largest amount of space Elm Park and Central Park where
well. Finance accounted for 20% of to be completed this cycle. 83% of this Chartered Land/Starwood Capital and
the market, led by AIB who let 273,000 space has already been let, with notable Green REIT are developing respectively.
sq ft across two locations – 10 completions including new headquarters While the increase in the development
Molesworth Street and Block H, Central for Microsoft, LinkedIn, Amazon and The pipeline will go some way to addressing
Park – while the State accounted for Central Bank. Looking ahead, more than pent-up demand, 34% of 2018 delivery
10% of the market, the largest being 2.7 million sq ft is due to come on stream has already been let suggesting that the
the OPW’s letting of 143,000 sq ft at this year of which approximately 40% will disequilibrium between demand and
Miesian Plaza. be in the docklands. supply will persist.
Activity continued to focus on the city The delivery of Ballymore Oxley’s No.1
centre which accounted for 61% of
take-up, followed by the south suburbs
and No.2 Dublin Landings in the north
docklands will continue the rejuvenation
Investment
with 19% and the city fringe with 13%. of this area, while Kennedy Wilson’s The market in 2017 was defined by a
Looking ahead, we anticipate another Capital Docks, Park Development’s stabilisation of investment volumes with
strong year in 2018 from the tech sector Reflector, Irish Life’s City Quay and €2.3 billion worth of deals changing
FIGURE 2
Office take-up sq ft
KNIGHT FRANK VIEW ON RISK
4,000,000
Following nine quarters without from 2012 to 2015. That phase was
3,500,000 movement between Q1 2015 and Q2 largely driven by aggressive rental
2017, prime office yields contracted growth expectations as Ireland’s
3,000,000
by 0.25% in both Q3 and Q4 to economic recovery took hold and
2,500,000 finish 2017 at 4.00%. The renewed Dublin moved from a distressed
downward pressure on yields reflects market to a recovery market. With
2,000,000
the transitioning of the Dublin market to the recovery now firmly established,
1,500,000 core status in the eyes of international the latest yield movements reflect
capital markets, which is attracting the entry of longer-term international
1,000,000
funds with global core mandates capital with lower return expectations
50,0000 to bid here. This yield compression seeking security of income, liquidity
marks the latest phase of tightening and diversification benefits, qualities
0
that the Dublin market has undergone which the Dublin office market
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
following the recovery phase which ran now present.
Source: Knight Frank Research
3DUBLIN OFFICE MARKET REVIEW AND OUTLOOK 2018 RESEARCH
PO
TMT ACTIVITY IN CITY CORE
RT
LA
KEY 2 Dockland Central The Beckett Building,
ND
Date: Q1 & Q3 2017 East Wall
RO
LETTINGS Rent: €52.50 psf Date: Q2 2017
W
Take-up: 32,480 sq ft
INVESTMENTS Rent: €22.00 psf
Tenant: Hubspot Take-up: 170,000 sq ft
DEVELOPMENTS Tenant: Facebook
SDZ BOUNDARY CONNOLLY
DART RAIL LINE TRAIN STATION
LUAS TRAM LINE 100 & 300 Capital Dock,
LUAS TRAM LINE Sir John Rogerson’s Quay
1 Dockland Central Date: Q4 2017
O‘C O
Date: Q4 2015 Rent: €53.50 psf
ET
Rent: €45.00 psf Take-up: 211,393 sq ft
TRE
N N EL
Take-up: 27,500 sq ft SHERIFF ST Tenant: Indeed
REET UPPE
SS
Tenant: Hubspot
R
L STR
IEN
5 Grand
the Canal Square
AM
D
EET
convention Date: Q4 2014
E WALL ROA
1WML centre Rent: €45.00 psf
AY Take-up: 126,376 sq ft
N QU Date: Q2 2017 3ARENA
ED E Rent: €55.00 psf
Tenant: Facebook
Take-up: 23,767 sq ft
ES QUAY
EORG Tenant: Core Media 4 Grand Canal Square
G Date: Q4 2013
UA Y Rent: €35.00 psf
O NQ 1WML CITY QUA
AST Date: Q1 2017 Y Take-up: 121,000 sq ft
Tenant: Facebook
Rent: €55.00 psf
Take-up: 35,000 sq ft
TRINITY
COLLEGE
Tenant: Informatica 8 Hanover Quay
Date: Q1 2016
NORTH DUBLIN
Price: €32,000,000
SUBURBS 31-32 Golden Lane Yield: 4.41%
Date: Q2 2017
5 Hanover Quay Purchaser: BNP Paribas
Rent: €47.00 psf 4 & 5 Grand GRAND CANAL Tenant: Airbnb
Take-up: 31,000 sq ft Canal Square Date: Q4 2017
PEAENERGY
RSE S THEATRE
Tenant: New Relic Date: Q1 2015 TREET Rent: €57.50 psf
Price: €233,000,000 Take-up: 61,333 sq ft
ET
ST
Yield: 4.31% Cumberland House Tenant: Delphi
N STRE
GRAFTON Date: Q3 2015
ARE
Purchaser: Union
STREET Tenant: Facebook Rent: €50.00 psf
3 Grand Canal Quay
KILD
Take-up: 85,000 sq ft
MO GR
Tenant: Twitter
DAWSO
A Date: Q2 2016
UN ND Rent: €65.00 psf
GOVERNMENT TS CA
BUILDINGS MERRION TR N Take-up: 19,095 sq ft
CORE EE AL Tenant: Zalando
SQUARE TL ST
WEST OW LO
DUBLIN BAY ER
SUBURBS W ER Montevetro
40 Molesworth Street
ST STEPHEN’S Cumberland House Date: Q1 2011
Date: Q2 2017 Date: Q3 2016 Rent: Owner-Occupied
GREEN
Rent: €60.00 psf Rent: €53.85 psf Two Haddington Buildings Take-up: 211,000 sq ft UE
CUFFE STREETake-up:
T 30,000 sq ft Take-up: 33,104 sq ft Date: Q2 2017 Tenant: Google BATH AVEN
Tenant: Jet.com Tenant: Mobile Travel Technologies Rent: €48.00 psf
Take-up: 28,385 sq ft Velasco
Date: Q2 2017
21 Charlemont Tenant: Dentsu Aegis Network
BA
R
PE
Rent: €55.00 psf
GG
SOUTH Date: Q3 2017
RD
UP
OT
LE
SUBURBS Price: €45,000,000 ON Take-up: 51,096 sq ft
GT AVIVA STADIUM
ST
ES
IN Tenant: Google
ST
Yield: 4.00%
DD
NO
CAMDEN STREET L
LO
HA
ON
Purchaser: La Francaise
IAM
WE
RTH
Tenant: Viasat LinkedIn EMEA HQ
ST
SHELB
R
ILL
HATCH STR R Completion Date: Q1 2017
U
EET L OWE
LO
ZW
MB
Type: Development
WE
E ROAD
FIT
Owner: LinkedIn
OURNE ROA D
ER L
LinkedIn HQ Site
R
Space Delivered: 126,045 sq ft
21 Charlemont Grand Canal/Fitzwilliam Sq
AND
Date: Q2 2017 Floorspace: 100,000 sq ft
CH
Delivery date: Feb 2017
ILL
Rent: €55.00 psf
RO
OWER
AR
Take-up: 36,834 sq ft
NV
AD
LE
Tenant: Viasat One Wilton Vertium Burlington Plaza O
IT
M
ON
TR
Completion Date: Q4 2019 Date: Q4 2016 Date: Q1 & Q3 2014
55 Charlemont Type: Pre-let
T
Rent: €50.00 psf Rent: €27.50 psf
ST
Date: Q2 2017 Developer: IPUT Take-up: 172,136 sq ft Take-up: 102,579 sq ft
Rent: €53.50 psf Size: 152,000 sq ft Tenant: Amazon Tenant: Amazon
RA
Take-up: 57,865 sq ft
NE
Tenant: Zendesk
LA G
L EE
SO
H RO
Note: All areas and delivery times noted above are approximate estimates only and subject to change
N
ST
4 UP 5
AD
PE“ 46% of office hands. The lack of large lot-sized
assets was best demonstrated by the
spend. The lack of prime opportunities
in the city centre encouraged investors
investment fact that 17 deals in excess of €50 to move up the risk curve with the
transactions million occurred in 2016 as opposed
to six in 2017. Despite this, the market
purchase of suburban assets and forward-
funding opportunities becoming more
in Dublin were comfortably surpassed its 10-year commonplace. This was highlighted by
purchased by average of €1.8 billion.
the sale of the Cherrywood Business Park
Irish buyers.” Office investment sales accounted for
the largest proportion commanding
for €145.0 million and the forward-funding
of 13-18 City Quay for €126.3 million.
39% of the market or €891.4 million.
It was noteworthy that 46% of office
Activity remained focused on Dublin with
the capital attracting 93% or €830.4 investment transactions in Dublin
million of the total office investment were purchased by Irish buyers which
represented a significant shift in the origin
of the buyer profile given that purchasers
from the US and Europe dominated the
FIGURE 4 FIGURE 5 market in 2016. This can be somewhat
Irish commercial investment Dublin prime office yields attributed to the prevalence of smaller
volumes € million lot-sized assets which are mainly of
interest to domestic private investors.
8%
5,000 However, there remains considerable
7% depth in the market with buyers from
the US and Europe accounting for 29%
4,000 6%
and 22% respectively. Prime yields
compressed to 4.00% by year-end,
5%
3,000 down from 4.50% at the start of the year.
4%
Looking ahead, 2018 should see an
2,000 3% increase in prime office investment
opportunities as developers and their
2% funders seek to exit their positions as
1,000
new office stock gets delivered and let.
1%
Additionally, the lowering of the required
0 0% holding period, from seven to four
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
years, for the exemption of capital gains
tax should also encourage the disposal
Source: Knight Frank Research Source: Knight Frank Research of assets.
FIGURE 6 Top 5 office investment transactions, 2017
Buyer and vendor source, 2017
Qtr Property Seller Buyer Approx price
US IRELAND EUROPE UK
Q4 Cherrywood Business Hines Spear Street €€145.0 million
BUYERS Park, Co. Dublin Capital
Q1 13-18 City Quay, TIO Irish Life €€126.3 million
Dublin 2
VENDORS
Q3 Gardiner House, Kennedy Wilson IPUT €60.0 million
Dublin 2
Q3 Blocks 4 & 5 Harcourt Clancourt Group Ares €€47.0 million
Centre, Dublin 2
Q3 21 Charlemont, Rohan Group La Francaise €€45.0 million
Dublin 2
Source: Knight Frank Research Source: Knight Frank Research
6DUBLIN OFFICE MARKET REVIEW AND OUTLOOK 2018 RESEARCH
SPECIAL FOCUS: THE TMT SECTOR IN DUBLIN
The Technology, Media and felt the impact of tech’s rise as keenly as
FIGURE 8
Telecommunications (TMT) sector has Dublin with Alphabet (Google), Microsoft
established itself as the most important (owners of LinkedIn), Amazon and
Relationship between TMT lettings
and VC funding in Dublin
sector in the Dublin office market, Facebook accounting for six of the top
accounting for 51% of take-up in 2017, ten deals in 2017. 2,000,000 1,200
SPACE LET TO TMT
two and half times the next nearest sector VC FUNDING TO TECH
These companies are no longer leaders 1,800,000
of Finance which had a 20% market
just in the tech space, but – in the 1,600,000
1,000
share. Just as important, the tech sector
preceding order – finished 2017, as
had a net take-up ratio of 62% which is 1,400,000
the largest companies in the world by 800
much higher than the 45% experienced
market capitalisation only behind Apple 1,200,000
€ millions
across the rest of the market. While the
(European HQ in Cork). What’s more,
sq ft
1,000,000 600
rise of the TMT industry has been a global
despite their already large size, they are
phenomenon with implications for office expanding rapidly and leading the race to
800,000
markets across the world, few cities have become the first trillion dollar company. 600,000
400
For example, Facebook’s revenue in 400,000
200
FIGURE 7 Q4 grew by 48% year-on-year to
200,000
Evolution of large tech footprint USD$12.9 billion.
in Dublin 0 0
2017*
Aligning its fortunes with the world’s
2010
2011
2012
2013
2014
2015
2016
800,000 largest and fastest growing companies
ALPHABET (GOOGLE) Source: Knight Frank Research / Irish Venture
MICROSOFT/LINKEDIN has been the primary factor in the
Capital Association
700,000 FACEBOOK expansion of the Dublin office market in
*VC Funding for full year estimated by extrapolating trend for
AMAZON recent years. As illustrated in Figure 7,
600,000 the first three quarters of the year
the growth in large TMT firms in Dublin
500,000 has mainly come post-2010, with the Lastly, putting Dublin in an international
400,000 quantum of space taken increasing context yields some interesting results.
fourfold over the period. This is a trend Although the top five companies occupy
300,000 that shows no sign of abating with further less space in Dublin than in London
high-profile expansion announcements and New York in absolute terms – an
200,000
expected in 2018. Interestingly, Figure estimated 2.0 million sq ft versus
100,000 8 shows that venture capital funding to 2.6 million sq ft and 3.1 million sq ft
tech in Dublin is trending upwards along respectively – they account for a much
0
with tech take-up which is supportive higher relative footprint in Dublin – 4.9%
Pre 2010
2010
2011
2012
2013
2014
2015
2016
2017
of the view that the arrival of these versus 1.1% and 0.7%. It is worth
established global firms is helping foster noting, however, that the space occupied
Source: Knight Frank Research start-up activity in Dublin. across the three of these cities pales in
Footprint comparison of top tech companies in key global locations
Company Business Market value Dublin London New York Global HQ Global HQ
segment ($USD billions)* (sq ft) (sq ft) (sq ft) (sq ft) location
Consumer
Apple 861 - 171,000 46,370 6,100,000 San Francisco, CA
Electronics
Alphabet
Search 729 748,331 1,100,000 993,091 7,860,000 San Francisco, CA
(Google)
Microsoft/ 306,448 & 50,000 & 331,427 & 14,900,000 Seattle, WA & San
Software 660
LinkedIn 191,497 70,000 195,248 & 1,083,000 Francisco, CA
Amazon E-Commerce 564 288,805 793,000 700,697 13,600,000 Seattle, WA
Facebook Social Media 515 417,376 400,000 808,355 2,000,000 San Francisco, CA
Total 3,329 1,952,457 2,584,000 3,075,188 45,543,000
Office Stock 39,500,000 226,000,000 443,000,000
Footprint 4.9% 1.1% 0.7%
Source: Knight Frank Research
*as at 2nd January 2018
7comparison to their operations in their unprecedented pressure. This is leading RESEARCH
respective Global HQ cities which stands to fears that a key competitive advantage John Ring, Head of Research
at over 45.5 million sq ft combined. is being eroded. However, judging by +353 1 634 2466
activity in 2017, this has not deterred tech john.ring@ie.knightfrank.com
RISKS firms from pressing ahead with expansion
plans in Dublin suggesting that the old IDA
Robert O’Connor, Research Analyst
+353 1 634 2466
Tech crash – there are concerns that mantra of ‘Come for the tax and stay for robert.oconnor@ie.knightfrank.com
being too closely tied to the tech industry the talent’ is proving true.
exposes Dublin to a Dot-com type crash CAPITAL MARKETS
as occurred in the early 2000’s. While Adrian Trueick, Director
apprehensions regarding toppy tech stock
OUTLOOK +353 1 634 2466
While much of the discussion regarding adrian.trueick@ie.knightfrank.com
market valuations may be legitimate, the
difference for many of today’s tech firms is potential benefits to the Dublin office Peter Flanagan, Director
that they have built-up large cash reserves market arising from Brexit has focused on +353 1 634 2466
the Finance sector, it is our opinion that peter.flanagan@ie.knightfrank.com
from established revenue streams so they
are well positioned to withstand the Tech sector holds the real potential Ross Fogarty, Director
for a Brexit bounce. With TMT companies +353 1 634 2466
fluctuations in market value.
highly reliant on sourcing skilled talent ross.fogarty@ie.knightfrank.com
Tax pressure – The EU ruling on Apple’s from across the EU, the uncertainty
tax affairs in Ireland combined with a regarding foreign worker visas in the UK OFFICES
tougher stance by the United States following Brexit may see firms choose to Declan O’Reilly, Director
+353 1 634 2466
on foreign cash holdings has resulted grow operations in Dublin rather than risk
declan.oreilly@ie.knightfrank.com
in Ireland’s tax policy coming under employee shortages in London.
Paul Hanly, Director
+353 1 634 2466
paul.hanly@ie.knightfrank.com
Overall market ranking of the top TMT deals 2010-2017
Jim O’Reilly, Director
+353 1 634 2466
Rank Year Tenant Property Sq ft
jim.oreilly@ie.knightfrank.com
1 2017 Microsoft One Microsoft Place, Leopardstown 300,000 Gavin Maguire, Associate Director
+353 1 634 2466
100 & 300 Capital Dock, Sir John
2 2017 Indeed 211,393 gavin.maguire@ie.knightfrank.com
Rogersons Quay
Mark Headon, Associate Director
3 2011 Google Montevetro, Barrow Street 211,000 +353 1 634 2466
mark.headon@ie.knightfrank.com
5 2016 Amazon Vertium, Burlington Road 172,136
David Reddy, Associate Director
6 2017 Facebook The Beckett Building, East Wall 170,000 +353 1 634 2466
david.reddy@ie.knightfrank.com
8 2017 LinkedIn One Wilton, Wilton Terrace 152,000
13 2014 Facebook 5 Grand Canal Square 126,376
14 2014 LinkedIn LinkedIn EMEA HQ, Lad Lane 126,045
15 2013 Facebook 4 Grand Canal Square 121,000
22 2015 Workday The Kings Building, Smithfield 95,000
Source: Knight Frank Research © HT Meagher O’Reilly trading as Knight Frank
This report is published for general information only and not to
be relied upon in any way. Although high standards have been
used in the preparation of the information, analysis, views
and projections presented in this report, no responsibility or
RECENT MARKET-LEADING RESEARCH PUBLICATIONS liability whatsoever can be accepted by HT Meagher O’Reilly
trading as Knight Frank for any loss or damage resultant
from any use of, reliance on or reference to the contents
RESEARCH RESEARCH
of this document. As a general report, this material does
RESEARCH
INDUSTRIAL MARKET INSIGHT - 2017 IN REVIEW INVESTMENT INSIGHT - 2017 IN REVIEW
While rising employment levels and Despite a strong finish to the year Office sales comprised of the largest FIGURE 3
household incomes are underpinning - with €965.3 million transacting proportion of activity with 39% of
not necessarily represent the view of HT Meagher O’Reilly
Investment spend by sector
increases in consumer spending, the during Q4 - 2017 was defined by a the market or €891.4 million. The
proliferation of digital technologies means stabilisation of investment volumes lack of opportunities in the city
that a growing share of this expenditure with approximately €2.3 billion worth centre induced investors to move % 2
is happening on-line. This was of deals changing hands. While up the risk curve with the purchase % 4
STUDENT
ACCOMMODATION % 1 Residential
demonstrated in Eurostat’s 2017 survey
investor appetite for Irish real estate of suburban assets and forward- 6
% MULTI-FAMILY
RESIDENTIAL
THE
HENRY
on ICT which showed that 18% of Irish HOTEL
remained robust, volumes were funding opportunities becoming more
% 6 Student Accommodation
trading as Knight Frank in relation to particular properties
people purchased household goods on- commonplace. This was highlighted INDUSTRIAL
line in 2017, up from 10% five years ago. constrained by a shortage of large
lot-sized assets as a result of the by the sale of a confidential suburban
This phenomenon has acted as a driving Multi Family
asset for €145.0 million and Irish Life’s
THE 2018 REPORT force behind recent demand for industrial decline in the deleveraging activity
39%
STREET
forward-funding of 13-18 City Quay for
space, with research by Standard Life
Investments1 illustrating that e-commerce
and loan portfolio sales which had
characterised the market up until now. €126.3 million. Retail sales accounted %
MIXED-USE
10 OFFICE
Hotel
requires twice as much industrial space The lack of large lot-sized assets was for 32% of the total spend or €714.3
or projects. Reproduction of this report in whole or in part
as traditional bricks and mortar retail for a Unit 103, Northwest Business Park, Ballycoolin, Dublin 15 which Knight Frank sold in Q4 2017. best demonstrated by the fact that million. While half of this was driven by
Industrial
given amount of sales. 17 deals in excess of €50.0 million the disposal of shopping centres and
Adding a further layer to demand, was the FIGURE 2 FIGURE 3
occurred in 2016 as opposed to six
deals in 2017, the largest of which
retail parks, there was also significant
interest in high-street retail assets, RETAIL
% 32 Mixed-Use
REPORT
sharp increase in industrial production Take-up by location Deal size share of market in sq m
in 2017, with Investec’s Manufacturing
FIGURE 1 FIGURE 2 Retail
Purchasing Managers’ Index finishing the
3% 9%
is not allowed without prior written approval of HT Meagher
Irish commercial investment volumes Investment spend by location Source: Knight Frank Research
year at 59.1 – the strongest reading in the
history of the series – up from 55.7 a year
7%
NORTH-EAST
SOUTH-EAST
South East
10,001+ sq m
10,001+
€ million
Office
earlier.
North East 8% 9%
501-1,000 sq m
5,001-10,000
2500 FIGURE 4
Investment spend by buyer originYou can also read
