Take-up of industrial and logistics space in Dublin increased by 5.5% in Q3 compared to last year, but has been hampered by a lack of stock, according to Savills Ireland.
More than 40 deals totalling around 611,000 sq ft brought total take-up for the year to date to over 2m sq ft, the lowest three-quarters total for five years.
Take-up has been hampered by an all-time low vacancy rate of 1.9%, said Gavin Butler, Savills’ director of industrial and logistics.
More than 35% of vacant stock is over 30 years old and speculatively built stock will not come to market until Q2 2021, which Savills said is limiting occupiers’ options.
Lockdown also resulted in delays to construction programmes for new schemes. Of the circa 285,000 sq ft that will be delivered by the end of the year, some 269,000 sq ft has already been prelet.
Prime rents for new space have now risen to €112.50 per sqm, which is expected to grow due to lack of stock.
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