A cumulative 107,242 square metres of take-up was achieved in the Dublin industrial market during the first nine months of 2011 with 40,469 square metres let or sold in the capital during the third quarter of the year specifically.
This demonstrates that despite the difficulties in the economy, industrial occupiers continue to take advantage of market conditions and negotiate transactions.
There were 23 individual lettings signed in the industrial market in Q3, accounting for 27,373 square metres between them while there were six industrial sales completed in the same period. These included the sale of the former McCormack Macnaughton premises in the Dublin South West (N7) corridor and the sale of Units 502 and 503, extending to 3,734m2, in Profile Park, along the same corridor.
The largest industrial lettings signed during Q3 2011 in the capital include the letting of a 5,229 square metre facility at Oakwest House in the Dublin South West (N7) corridor; the letting of 3,902 square metres at Willsborough Industrial Estate in the Dublin North East (N1/M1) corridor and the letting of 3,534 square metres at Poppintree Industrial Estate in the Dublin North (N2) corridor.
Other lettings agreed recently include the letting of a 3,994 square metre facility at Baldoyle Industrial Estate; the letting of a 2,337 square metre unit to United Drug at Citywest in Dublin 24; the letting of a 1,852 square metre facility at Harold’s Cross Road in Dublin 6W and the letting of a 1,653 square metre unit at Cookstown Industrial Estate in Tallaght to Logic Fleet Management. Two motor showrooms at Blanchardstown have also recently been sold on the instructions of receivers.
New facilities to come to the market for sale in recent weeks include the 14,594 square metre former Amcor facility in Finglas, which sits on a site of over seven acres and is being guided competitively at €5.5 million.
A significant proportion of the current demand for industrial accommodation is emanating from companies that are expanding operations as opposed to new entrants.
However, as a result, the vacancy rate remains relatively high as older premises come back on the market to let. As a result, a significant differential exists between rents for prime and secondary industrial accommodation with prime rents now stable at approximately €65 per m2.
There are currently a large number of industrial transactions in legals, which should sustain take-up levels over the coming months and into 2012.
