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Record uptake in Dublin industrial and logistics sector in third quarter

CBRE Ireland said the dynamics have never been seen before in the Dublin market
CBRE Ireland said the dynamics have never been seen before in the Dublin market

There was record take-up recorded in the industrial and logistics property sector in the capital between July and September.

186,647 sq m of space was taken up during the period, according to CBRE Ireland.

It said the dynamics of the sector at this point have not been witnessed before.

The performance was driven, it added, by pre-letting and build to suit activity, which made up nearly two thirds of the total space signed for.

It claimed import volumes and e-commerce spend is at an all-time high, while global shipping container prices have fallen by 50% since July.

"The occupational market is now as strong as at any point in history," CBRE Ireland said.

"Demand continues to grow, availability is tight, and rents are rising."

The company said yields have grown by 25 basis points to 4.25%, driven by the changing macroeconomic environment, inflation and rising interest rates.

Among the biggest deals of the quarter, it said, was the pre-letting of over 250,000 sq ft of space at IPUT's 'Quantum Logistics Park’ in North Dublin by Danish shipping firm, Maersk.

"We continue to see strong occupier demand for modern industrial & logistics facilities throughout the Dublin region and this is reflected in the record quarter of take-up in Q3," said Head of industrial & logistics at CBRE Ireland, Garrett McClean.

"While there remains a shortage of available stock, we have been active in advising on pre-letting and build-to-suit transactions, alongside traditional leasing activity."

"It is encouraging to see a strong pipeline of under construction stock that should reach practical completion in the coming months, and this will lead to continued momentum in leasing activity into Q4."