According to the latest figures from estate agent CBRE, take-up in the first three-quarters of 2024 is higher than the whole of last year.
A further 85,200 sq m of Dublin office stock is “reserved” and the agent is now forecasting that total take-up for 2024 will exceed 185,000 sq m.
That’s “a hugely positive outturn given ongoing questions regarding the potential impact of increased hybrid working on the long-term demand for office space”, Alan Moran, head of office investor leasing at CBRE Ireland, said.
“The 10-year annual average for take-up in the Dublin market is approximately 2.6 million sq ft (240,000 sq m).”
The largest deal of the quarter saw Big Four accounting firm EY agree a lease assignment from LinkedIn at IPUT’s Two and Three Wilton Park in Dublin 2.
“It is hugely encouraging to see the continued take-up of grey space in the city and Wilton Park will now enjoy an impressive tenant mix of Linkedin, Stripe and EY,” Mr Moran added.
Professional services and financial occupiers continue to actively pursue modern, sustainable Dublin office space.
Other notable deals this quarter included investment firm KKR taking additional space at the Cadenza building on Earlsfort Terrace, now occupying 5,480 sq m in total.
Law firm Addleshaw Goddard signed for 2,200 sq m at Amundi Real Estate’s Fitzwilliam 28 building in Dublin 2.
Rents for prime offices “remain solid” but there is certainly weakness in other parts of the office market and there are more incentives on offer compared with pre-Covid pandemic times, according to Colin Richardson, CBRE’s head of research.
Despite the rebound, vacant office space and availability remain high at over 18pc when grey space, or sub-lets from existing tenants, is included.
On the other hand, the vacancy in the city centre for best-in-class space has fallen slightly thanks to large lettings in the area.
Mr Moran’s optimism is underpinned by the prospect of some professional services companies completing agreed leasing deals in the next few months. These include Deloitte.
It is also hoped that technology group Workday will sign up to occupy over 37,000 sq m at Marlet’s new College Square development off Tara Street in Dublin 2 before the end of the year.
“This large letting, along with the completion of leasing deals at Wilton Park and the HSE’s acquisition of the Seamark Building at Elmpark earlier in the year, is shrinking the amount of available large-scale, A-rated buildings in the city,” Mr Moran added.
“While the market continues to face certain challenges, sentiment in the Dublin market has improved significantly.
“Deal flow and demand are trending positively, and the full-year numbers for take-up in Dublin will reflect this.”
