New figures from property advisor Savills Ireland show that Dublin office take-up is almost 50% higher this year compared to last year.
The Dublin office market take-up will likely surpass 500,000 square feet in the final quarter of the year based on provisional figures, bringing the total take-up for the year to at least 2.25 million square feet.
Savills said while this is indicative of the recovery in the market post-pandemic, it is still slightly below the ten-year average of 2.50 million square feet.
But it also noted noted that further deals are likely to sign before the end of the year, boosting volumes further.
It added that today's figures do not include the 300,000 square feet Citigroup deal on the North Docklands which may also sign by the end of December, and which would boost volumes beyond the 2.50 million square feet mark.
The largest letting of the fourth quarter - and second largest of the year – was SMBC's deal for the entire Fitzwilliam 28 offices.
BDO signed for 46,000 square feet at Miesian Plaza, the former Bank of Ireland headquarters in a relocation and expansion play that will allow the firm to add more than 100 jobs.
The third-largest deal was completed by Horizon Therapeutics who signed for 33,000 square feet in 75 St Stephen's Green, adding to their current headquarters at 70 St Stephen's Green.
Today's reports shows that city centre stock was the focus of the year, although the final quarter saw a return of activity in the city fringe which accounted for 7% of space taken, largely boosted by the pre-let of Le Pole Square in Dublin 8 by Etsy.
Suburban locations also saw an increase in the last three months of the year with a 29% market share while the remaining 64% was located in the Central Business District of the city.
Savills said that while this is the lowest city centre share since the third quarter of 2021, the top three deals in the quarter were still all located in the city centre.
Savills also said it was involved in four of the top five deals this year, acting on either behalf of the landlord or the tenant.
These included A&L Goodbody deal for at the new 25 North Wall Quay, TikTok at Tropical Fruit Warehouse and An Post at EXO.
The property advisors said that despite the negative sentiment towards tech, it still accounted for the largest share of space taken this year at 36%, followed by finance at 22% and professional services at 17%.
Andrew Cunningham, Director of Office Agency at Savills Ireland, said that despite the economic uncertainty and energy cost inflation taking effect in the second half of 2022, the market has shown resilience with healthy take-up figures recorded in the last quarter of 2022.
"There is also positivity in the diversification of the occupier base. Indeed, it is significant that three of the largest office space requirements currently active in the market are professional services firms while aviation leasing and pharma have also been expanding," Mr Cunningham said.
"Although an easing of demand is expected in the early part of next year until inflation eases, the underlying base of demand from other sectors has remained resilient and will support take-up levels in 2023. The State are yet to enter the market with its 2030 commitments approaching," he added.
