Technology companies have dominated Dublin office lettings so far this year, with tenants from the sector accounting for more than 40% of leasing activity between Q1-Q3.
Research from CBRE found that tech companies represented 34% of take-up in Dublin in the third quarter alone.
In total, more than 220,000 sq m (237,000 sq ft) of office leasing activity has been signed in Dublin in the year to the end of September, with a further 100,000 sq m of office accommodation in the capital reserved at the end of the quarter.
Prime office rents in Dublin city centre have now plateaued at €700 (£616) per sq m while rents in the south suburbs of the city, which currently stand at approximately €306.66 per sq m, are expected to increase over the coming months.
Marie Hunt, executive director and head of research at CBRE Ireland, said that the unusually high number of prelettings would encourage developers that demand was likely to remain strong into 2019.
“There is currently more than 100,000 sq m of office accommodation reserved and demand is running at more than three times that level, which points to a very strong Q4 and continued momentum into 2019,” she said.
“Interestingly, more than a third of take-up in Dublin in the year-to-date has comprised prelettings, which gives comfort to developers of new schemes that are being developed on a speculative basis.”
In the first half of 2018, Google signed the largest commercial deal of the six-month period, buying the entire 240,000 sq ft Bolands Quay development from NAMA for €300m for its own occupation.
Other significant moves by technology companies include LinkedIn’s lease of 150,000 sq ft at IPUT’s One Wilton Place. It is the company’s first purpose-built office outside the US and the company’s new EMEA headquarters.
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