Prelets accounted for 44% (301,390 sq ft) of all Dublin office space leased in Q4 2016, according to Savills.
In the areas known as Dublin 2 and 4, where demand for business space is hottest, prelets accounted for 61% of the market, demonstrating a surge over the last two years.
Savills chairman Roland O’Connell said that preletting is emerging because it delivers benefits for all parties in the current market.
He said: “Although enough grade-A space is available to accommodate around 2,200 office workers, occupiers with large space requirements or very specific locational preferences are facing an increasingly limited choice of buildings.
“Preletting opens up a wider set of possibilities for tenants and some are willing to forego immediate occupancy in return for buildings that tick the right boxes in terms of location, fit and finish.”
According to the Savills Dublin office report, Ireland’s economy is expected to grow by 3.3% this year and the city could see an increase in office demand, post-Brexit.
Click here to read the full report.
“Recent global events – particularly Brexit and the US election results – introduce an element of uncertainty into the outlook for Dublin office demand,” the report states.
“However, macroeconomic forecasters have now had time to digest these factors and incorporate them into their projections.
“The consensus forecast is that Ireland’s economy will continue to expand strongly, growing by 3.3% in 2017 and 3.1% next year.
“This, and the likelihood that any Brexit effects are likely to asymmetrically impact on Dublin and the regional economy, suggest that the demand for office space in the capital should remain robust.”
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