Commercial property group Hibernia Reit has found that office take-up in Dublin has continued to gain momentum, mostly by occupiers in technology and professional service sectors.
It established that around one million sqft was leased in the fourth quarter of 2021, with two large lettings accounting for half of this. This rise came despite the return in November of government guidance for employees to work from home, which was lifted in January 2022.
Hibernia Reit’s chief executive officer Kevin Nowla commented that, “Ireland’s strong economic performance, together with high levels of foreign direct investment, helped occupier activity recover in 2021 and with health restrictions in Ireland now lifted, we are optimistic that the positive momentum in the office market will continue in 2022, absent an adverse change in the direction of the pandemic.”
The vacancy rate for Grade A office space in Dublin’s city centre fell from 11.1% in quarter three to 9.1% in the fourth quarter of 2021. It stood at 8.7% at the end of 2020. The overall Dublin office vacancy rate fell from 10.5% in quarter three to 9.8%, compared with 9.5% in quarter four 2020 as letting activity picked up.
Prime Grade A office headline rents in the city centre “remained stable” at €57.50 per sqft, Hibernia said. Over 99% of commercial rent for the quarter ending March 2022 has been received by the Dublin-listed company, or is on agreed monthly payment plans, with over 97% received.
LSL News.