506,000 sq ft of Dublin office space was signed in the second quarter of this year across 60 transactions - making it the most active quarter for the number of transactions since the final quarter of 2019.
That's according to new data from commercial and residential property firm JLL.
The figure for the second quarter of this year is up 7% on the 473,775 sq ft transacted in the previous quarter, and up over 134% from 216,258 sq ft transacted in the second quarter of last year.
The tech industry accounted for 31% of space leased across five deals, with banking and finance being the second largest industry with 30% of the market across 14 deals.
One-third of leases were located in the suburbs in Sandyford and Citywest.
The figures show that the vacancy rate for this quarter stands at 12.1%, up from 11.2% in the previous quarter.
JLL said the spike in the vacancy rate can be attributed to new space entering the market along with 875,000 sq ft of office space under construction going to practical completion in the quarter.
The completed office space was 67% pre-let.
JLL said optimism has restored to the market as we enter the second half of the year with 1.2 million sq ft of floor space reserved.
It said it has also identified over 3.5 million sq ft of active demand in the market with 19 requirements for space that is over 50,000 sq ft.
Despite the downturn in the sector with global share prices, the tech industry reflects 25% of the active requirements as Dublin retains the moniker of tech capital of Europe.
"New space will play a more significant role in the market's leasing activity, with occupiers meeting environmental, social and corporate governance (ESG) criteria," said Niall Gargan, Head of Research at JLL.
"A reset is underway with carbon footprint, climate change and health and wellbeing radically disrupting what constitutes a best-in-class building.
"Due to the regulation and competitiveness of the market, new builds will automatically demand a premium rent if standards and the location are favourable," he added.