Dublin’s Office Market – an indicator of growth in the Tech Sector
Dublin’s Office Market
Overall 2017 represented a very strong year for the Dublin office market. Total take-up for the year as a whole was in excess of 331,000m2, which was a new record. Current vacancy rates are at a low of 6.9% in the city centre. The city hasn’t seen rates this low since 2000. If we take a closer look at Dublin's office market we are able to see certain trends in different industries, with one industry standing out from the crowd.
Tech company growth
With 4% of Dublin’s entire office market being occupied by just two companies, Google and Facebook, the tech industry in Dublin have two very strong ‘anchor’ tenants. The very presence of such tech giants has created a tech cluster, attracting a variety of technology companies and ICT (Information and Communication) companies to the city. Nearly one third of office space demand came from the Tech sector last year. 2017 saw lettings to companies in the Tech sector account for 54 per cent of take-up for the final quarter and 44 per cent of the overall annual take-up in the capital.
2017 saw nine lettings for spaces in excess of 50,000sqft/4645m2. These included:
- 34,554m2 to Microsoft in Sandyford
- 19,641m2 pre-letting at Capital Dock in Dublin Docklands to Indeed
- 17,489m2 to Facebook at East Road in Dublin 3
Tanya Duffy, a researcher at Lisney, predicts a significant increase in the presence of large international companies in the Dublin office market. When you examine the benefits of choosing Ireland as a place to do business, coupled with the realities that Brexit will bring, we may well continue to see a surge in international companies setting up an office in Ireland.
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