The Dublin office leasing market continued its recovery in the first quarter of this year with take-up totalling nearly 39,500 sq m (425,025 sq ft).
This is more than double the level seen in the same period in the first three months of 2024, but continues to lag behind the long-term quarterly average of nearly 60,000 sq m (425,175 sq ft).
The improvement in the latest period follows a rebound in activity in the second half of last year. The full-year take-up for 2024 was up 66 per cent year on year.
There is currently nearly 140,000 sq m (1.5 million sq ft) of stock reserved in the city, with nearly 30 per cent of this (44,129 sq m /475,000 sq ft) accounted for by Workday’s agreement to locate its new European headquarters offices at College Square, the major mixed-use scheme being developed by Pat Crean’s Marlet Property Group in Dublin city centre.
Workday’s decision to locate at College Square was first reported by The Irish Times in August of last year.
The largest deal of the latest quarter meanwhile was at Three Wilton Park, where big-four accounting group EY exercised their option to take an additional 5,100 sq m (54,896 sq ft) of space following their deal last year to lease 12,400 sq m (133,472 sq ft) at the neighbouring Two Wilton Park.
The deal means that there is now no more available space at the Wilton Park scheme, where Stripe will occupy Number One, EY will occupy Number Two and three floors at Number Three, with LinkedIn occupying the remaining space.
Other notable deals in the quarter include the signing of a long-term lease for two floors at Four Park Place, where a private-and-confidential occupier secured 3,512 sq m (36,712 sq ft). US-headquartered financial giant Blackrock secured a deal to occupy 2,000 sq m (21,527 sq ft) of space at Glencar House in Ballsbridge in Dublin 4.
Just over 40 per cent of all deal activity in the quarter involved sustainable (Grade A+) buildings. Technology occupiers were the most active tenant group during the quarter, accounting for 27 per cent of take-up, while professional-services occupiers accounted for a further 24 per cent of all activity.
Colin Richardson, head of research at CBRE Ireland said: “Rather than focusing solely on the volume of leasing completed in the first three-month period, we take encouragement from the outstanding requirements in the market.”
“Demand is trending positively, and the level of reserved stock is a positive leading indicator. We expect take-up to continue to improve as the year progresses. The impact of global macroeconomic uncertainty has yet to be felt in the Dublin market, but subject to announcements this week, will likely impact some decision-making as the year progresses.”
