Dublin is a potential saviour as a place for businesses to relocate and reconstruct if all goes south post-Brexit. As a result, prime office rents in the city centre are set to dramatically increase, and peak at £60.00 per sq ft next year. HWBC, a leading Irish real estate agency, explains that this will bring an end to four consecutive years of rental growth.
According to HWBC, this speculated end of rental growth is due to the high levels of office development currently being undertaken in the Dublin market. Indeed, it is estimated that 3.54 million sq ft of new space will be completed this year, while 4 million sq ft is currently under construction.
At this stage, Dublin is potentially in a better position than London. Headline rents in the UK capital seem to be dropping as a result of the uncertainty created by Brexit.
Eugene O’Sullivan, London’s leading Chartered Surveyor and Managing Director at Morgan Pryce, explains; “Headline rents in Dublin will naturally peak. For example, J.P. Morgan – a global financial giant – has recently acquired over 100,000 sq ft in Dublin for post-Brexit scenarios. This is why rents are increasing and reaching maximum potential.”
HWBC’s research shows that grade-A city centre rents rose by 8% to €62.00 per sq ft in the first half of 2017. Speculative development and the completion of new office schemes have undoubtedly made the market more expensive. Take-up of new space was also 56% up on the same period last year at 1.67 million sq ft, with significant deals being completed across the city.
This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.
