Despite a slow start to the year, activity in the office leasing market in Dublin is likely to pick-up in the coming months, according to new data, driven by strong demand from the State.
Savills Ireland has reported that 266,000 sq ft of take-up across 38 deals took place in Q1 2023. City centre stock was the most popular among occupiers during the period and accounted for 66 per cent of take-up across 24 deals.
Two of the three largest deals took place in Dublin 1 and 2, while the suburbs accounted for 32 per cent of total take-up and the city fringe made up only 2 per cent.
The largest letting of the quarter was DataDog's relocation from 13-18 City Quay to One and Two Dockland Central, where it took 44,000 sq ft across the two buildings. The second biggest transaction was Pinterest's take up of 28,000 sq ft of grade A space at 60 Dawson Street, followed by Virtual Access with 25,500 sq ft taken at Parkwest.
Overall, the first half of 2023 to be characterised by relatively softer activity following last year’s absorption of pandemic-related pent-up demand. However, the State is likely to support demand in the year ahead as deadlines for its ESG agenda and carbon emissions reductions continue to approach. In addition, revisions to the Energy Performance of Buildings Directive will require both the public and private sectors to accelerate their sustainability efforts, necessitating further activity in the market.
