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OFFICE RENTS IN Dublin have grown by almost one quarter in the space of a year, new research by property agency Savills has found.
The rapid increase in the price of office space in the capital can be partially attributed to the depths to which the market sank during the recession, Savills head of office agency Roland O’Connell said.
“Effective rents fell by more than 50% during the downturn and, in that context, it is not surprising that we are seeing something of a bounce-back.”
Despite this, O’Connell said that there was a real danger from the elevated rate of growth in rental prices.
“While increasing commercial rents are welcome insofar as they reflect the underlying strength of the economy, we would not want to see this rate of growth continue in the long term.”
He said that the knock-on implications of high rent prices could hurt Ireland’s competitiveness and the attractiveness of Dublin as a location for mobile international business.
Incentives on the way out
The strong demand for office space has led landlords to cut back on the incentives they are offering potential clients, typically a period of rent-free occupancy.
The roll-back on rent-free periods has combined with the upward headline rent trajectory to give Dublin the highest ‘net effective’ rent growth in Europe, at 39.3% in the last 12 months.
This compares with an average European growth rate of 5.1%.
Dublin was one of only seven European markets across Europe in which the average rent-free period fell, along with international hubs such as Hamburg, London, Dusseldorf and Paris.
Director of research John McCartney said that increased demand has allowed landlords to row back on incentives, with the average rent-free period on a standard office lease halving in the last year.
O’Connell said that the upward trend was an acute reminder of the need for more construction activity to boost the supply of prime office space in Dublin.
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All this good news must have people worried, sure what are they going to moan about if things are going well?
There you go Paul. Ger found something.
Tingz wear better wen tingz was worser
Hauliers are the back bone of the country. They even deliver the economy.
Brilliant customer service, always with Irish Ferries. They go out of their way to help.
They went out of their way to get rid or their Irish staff.
Greedy Irish Staff.
The way they faced down the unions was an inspiration to us all, they stood up to the bullies and showed the rest if us the way
You must have met the ONE that can speak english
You mean polish ferrys find stena much better
Maybe its all the baled waste heading abroad for incineration. Export all our problems?
Or it could be an increase in emigration.
People shipping their stuff overseas.
Containers on ships is not always good news.
Or maybe they are transporting all the illegal cannabis grown in Co Clare to supply markets on the continent.
Thanks Enda :)
Which way is the freight going? Mainly in or out? Without that information just Journal spin! Not very accurate reporting
Does it matter, it’s keeping a Irish comapny going who have just announved lots of expanction at start of the year. Jobs are being secured in Irish and British ports.
You should really read up on how a successful economy works import export, balance of trade etc.
oh yeah. a truly great irish company. who flag out their ships under the Cypriot flag to limit the need to comply with best practices. who use an agency to employ non EU crew and and pay way below the minimum wage with minimum leave. a true shining light.
John they have the best ferries & service on the Irish sea. You may be correct about how they behave towards their staff but your argument is damaged by your misinformation.
Micheal. would you mind explaining what you .mean by my misinformation?
Your suggestion about using best practices is vague & designed to be that way to call into question the highest standards used by IF. These ferries are the best on the irish sea with the best service on that sea. Nothing comes close for service or comfort. I know i travel on all these ferries serveral times a week.
micheal…..if you travel with IF on a regular basis you might remember when a truck driver died due to a heart attack. he was attended by a nurse who was travelling on the ship. she requested the use of a defibrillator and was told that there was none on the ship. This was confirmed by an Irish Ferries spokesperson on national radio. they said it wasnt required and yet when these ships were manned by Irish and Uk crew there were defibeillators onboard and crew trained in the use of same. This Micheal is one example of what i mean by best practices. So next time you travel enjoy your comfort but for your sake dont have a heart attack!
We agree that Hauliers and Couriers are the backbone of the country (referring to the UK but we sure it’s the same for Ireland). This has been proved during the #opstack crisis caused by the nonsense at Calais recently. We really want to do more business with Irish Ferries as our freight customers always have good feedback about them. Roll on 2016.
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