Commercial property market showing signs of stabilisation

The Irish commercial property market is said to be picking up, according to CBRE

Print

Print

News

There has been an escalation in activity in the Irish commercial property sector over the last few months. This is according to a report from property consultant CBRE, which released its final bi-monthly report for 2012. 

Marie Hunt, executive director and head of research at CBRE said there has been much discussion about a stabilisation in the Irish housing market over the last few months. "This trend is also being witnessed in the commercial property sector," she said. "Indeed, the last two months have seen a very significant increase in the volume of activity in all sectors of the Irish commercial property market. Transactional activity in all sectors has escalated over the course of the Autumn. If this continues, a busy 2013 is in prospect."

Total returns in the Irish commercial property market have been positive for four consecutive quarters now, according to IPD’s Irish Index, and have increased by 4.8% in the last 12 month period. 

"Demand for prime office and retail property is primarily emanating from overseas investors. Meanwhile, many of the smaller lot sizes, which are being offered for sale around the country, are mainly of interest to domestic purchasers, particularly those with cash," added Hunt.

An increasing number of retailers are reporting a stabilisation in their trading patterns and some are reporting year-on-year increases in trade.

"In the retail sector, demand is strongest for units on prime high streets and in good shopping centres, which is evident from the negligible void rates in these locations, albeit many of the transactions are short-term in nature and off significantly lower rents than prevailed previously."

The volume of take-up achieved in the Dublin industrial sector in the first nine months of 2012 was the highest since 2008. Encouragingly, despite the economic backdrop, there is considerable appetite from corporate occupiers to acquire facilities in a range of locations around the country with companies in the food sector, logistics companies, distribution companies and third party logistics (3PLs) proving most active.

Related Articles

Maersk launches latest dual-fuel methanol vessel Alexandra Maersk →

Irish football icon Paul McGrath teams up with Pringles for Movember →

Lidl unveils ‘Vino Sensoria’ wine tasting experience in Dublin →

Colin Farrell to run Dublin Marathon for Debra Ireland’s “Run to 40” →