Savills Expects New Office Space Growth In Dublin

09 Jul 2021 | 08.14 am

Savills Expects New Office Space Growth In Dublin

Outlook not great for spec developers

09 Jul 2021 | 08.14 am

Just on 200,000 square metres of new office space will be delivered in Dublin this year, up 35% on 2020, according to Savills Ireland.

Thirty three office buildings with capacity for up to 30,000 people will be added to Dublin’s office stock this year. Savills says that three-quarters of this space is pre-let and the balance is not.

Savills report that of the office stock that was delivered in 2020, half is now either pre-let or agreed to occupiers.

Associate director Seán Ryan McCaffrey commented: “With negotiations ongoing on many of these 2020 buildings, we would expect this figure to rise imminently.

“As we enter the reopening phase of the economy, we expect to see a continued rise in demand for space, especially new environmentally friendly buildings, as occupiers start to return to the office and formulate long-term occupational strategies,” he added.

A separate report from the global property advisor predicts that office occupiers looking for quality workspace in Europe will face competition in the leasing market despite the most active period of new office construction in half a decade.

Newly developed offices set to complete in the region this year will provide 26% more space compared with 2020. However, average vacancy rates across many cities such as Berlin, Stockholm, Amsterdam and Paris will be below 6%, according to Savills.

Prime offices will be most scarce in Berlin, which is set to have a 2.3% vacancy this year, with other German cities seeing very little spare capacity. In 2021, Cologne’s vacancy rate will be 2.9%, while Hamburg’s will be 4%.

Savills is also seeing space constraints in Stockholm, which is registering vacancy of 5%, and in Munich, where unleased office space will be 4% of the market. Savills other vacnacy estimates are Lisbon 7.2%, London West End 7.3% and  Barcelona 8.5%.

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