Take-up of office space in Dublin rose by 66% between July and September, when compared to the same time last year.
A new report by BNP Paribas Real Estate Ireland outlines some emerging positives for the capital's office market, but cautions of some short-term headwinds.
During the three month period, 48,000 sq m of office space was leased in Dublin, up on the previous quarter.
The report shows that demand from 'traditional' sectors such as financial and professional services remains strong.
"The ongoing improvement in take-up is an important first step towards a market recovery," said John McCartney, BNPPRE Director of Research.
"However, with a significant pipeline of new space already under construction, vacancy is likely to tick-up further in the short-term, keeping pressure on rents," he added.
The report states that Dublin currently has one of Europe's highest office vacancy rates.
Despite the uplift during the third quarter, the report outlines a number of challenges remaining.
For example, the tech sector accounted for just 7.1% of office take up between July and September, down on the 51% recorded between 2017 and 2021.
The report also states that the 'back-to-the-office' dynamic appears to have slowed, with potential impacts for office demand.
Meanwhile, nearly half of the take up during the the three month period was accounted for by sub-lets or assignments, which do not subtract from vacant space.
