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Commercial property review sees industrials topping other sectors

Office block

A forecast published by the Society of Chartered Surveyors Ireland in the Commercial Property Review and Outlook 2022, indicate that values and rents for industrial and logistics units will continue to climb this year. It reinforces that the outlook for offices and retail has also improved.

SCSI Commercial Agency Committee chair, Max Reilly, comments that the review of its commercial surveyor members indicates an overall upturn in sentiment.

There is anticipation that prime industrial rents will rise by 6% on average this year, while rents for secondary industrial are expected to grow by 3%. Capital values are predicted to increase by 5% and 3% for prime industrial and secondary industrial respectively.

Steady occupier demand for prime offices will push their rents up by 1pc and investor demand could boost their values by 2%, but secondary office rents are expected to fall by 1% while their capital values will stabilise.

There could be a 1%c dip in retail rents in prime locations. The SCSI/IPD index showed rents in Henry Street fell 14% and those in Grafton St fell 7.1% last year. Secondary retail rents may fall by 4% in 2022.

Projections for the retail market improved last year, which means the capital value of prime retail could stabilise, but the value of secondary retail is still expected to fall by 3%.

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