Office take-up in Dublin hit 409,028 sq ft in Q1 of 2015 across 64 transactions, the highest number of deals over a quarter since Q1 2008, according to new research from CBRE.
The high number of small transactions is a reflection of the scarcity of available office space in Dublin.
The vacancy rate in Dublin city centre now stands at just over 7%, while the Grade A vacancy rate in the Dublin 2/4 postcode is now 1.78%.
Demand from TMT occupiers accounted for almost half of the deals over the quarter.
Alan Moran, director of office agency at CBRE, said: “As rents in the central business district continue to escalate with prime headline rents now in the order of €47.50 per sq ft in Dublin 2/4, we are increasingly seeing potential occupiers looking to alternative locations in the city as well as suburban options.
“Indeed, 38% of take-up in Q1 2015 occurred in the suburbs; five of the ten largest lettings signed during the period were for office space in the suburbs.”
