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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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I wish the Journal and other media outlets would stop this over reporting of the weather. Everyday its the same crap, warm for a few days. Cold and wet for a few days. Thats Irish weather in a nutshell..
@Cosmo Kramer: To some of us busy people – the weather is critical to doing our jobs. Daily updates are critical.
@Cosmo Kramer: And maybe, the media should stop reporting the news too as it’s always the same – car accidents, strikes, drugs, crime?
@Fank Pulman: Frank the weather is either cold and wet, warm and dry, cold and sunny or wet and warm. Thats it with the exception of the odd windy day. Look out the window every now and again and your set..
@Cosmo Kramer: An extraordinarily naive post! Cursory window observations will not tell you when the weather will change – or what it’s like (or going to be like) in different locations.
@Fank Pulman: your not that busy dude
@Donnchadh Cassin: But, unlike you, I can spell…
@Cosmo Kramer: red thumb
I agree. The weather in this country is not news, and should not feature on ‘news’ apps. There are several good weather apps out there for those who are interested.
@Anthony Byrne: No – it’s not news. Just very important information, for many…
@Fank Pulman: maybe we should cancel all traffic reports as well – because we know the roads are always crowded!?
Yep. And the sky is blue. This is also information. Important information to some.
@Fank Pulman: Oh sorry didnt realise this was an english test…ya spanner. also a great sign that somebody has lost any argument when you resort to being a grammar cop.
You couldn’t even go one day. Do you have hard on’s for giving us bad news journal?
See the gimps going crazy at even a hint of sunshine. It’s still very cold outside.
@Censored: lovely n warm in my yard
@Censored: 17 degrees is hot for March in Ireland lad
Fab here. Don’t be so moany.
Those Sheriff Street lads jumping into the Liffey near the convention centre.
Do you all realise that you paid for their swimsuits?
Come on journal let us enjoy the few days we have. We know its not going to last forever its March ffs.
If we didn’t talk about the weather, we would have f*u*c*k all to talk about!
My umbrella is up and down more times than a wh*res knickers!
have your say