Take-up in the Dublin industrial and logistics property market recovered strongly this year, after a significant dip in 2024. This was despite ongoing volatile and unpredictable geopolitical and economic conditions, and was all the more remarkable given the State’s position as one of the world’s most open economies, and one which is highly dependent on trade with the US.
Take-up in 2025 looks set to bounce back to around 0.23 million square metres (2.5 million sq ft), up from a low of 0.12 million square metres (1.3 million sq ft) in 2024. This recovery was supported by much-improved warehousing supply and robust export performance, which held firm despite tariff concerns following “Liberation Day”.
Domestically, lower inflation and interest rates, coupled with stronger real-wage growth, bolstered consumer spending and encouraged occupiers to progress space requirements that had been paused for some time.
Demand
Surprisingly, the five largest lettings of the year to date involved existing buildings, four of which were leased by third-party logistics (3PL) operators. In southwest Dublin, PRL secured a long lease of unit Q1 Aerodrome Business Park, comprising 16,000sq m (172,000sq ft); JMC Vantrans signed for 14,000sq m (152,000sq ft) at the refurbished Ballymount Logistics Hub; while Primeline Logistics expanded its footprint by an additional 10,000sq m (110,000sq ft) in Cloverhill Industrial Estate. In north Dublin, BMC Manufacturing took 14,300sq m (154,000sq ft) in two interlinked buildings in IBM’s Damastown Business Campus, while DB Schenker took a sub-letting of 16,500sq m (178,000sq ft) at Unit 3 Quantum Logistics Park.
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As the year progressed, occupier focus shifted to new units under construction, offering a level of choice not seen in the market for several years. The largest such transaction was Musgrave’s 10,000sq m (108,000sq ft) letting at Unit 3, Vantage Business Park. The only significant new-build sale to an end user was Thermo Fisher Scientific’s purchase of the 6,800sq m (73,000sq ft) Unit A01 The Hub Logistics Park. A further 93,000sq m (1 million sq ft) of space is currently reserved and due to sign in the first three months of 2026, the vast majority being new warehousing.
Supply
New-build completions are forecast to reach 149,000sq m (1.6 million sq ft) by year-end, a substantial improvement over the 85,000sq m (920,000sq ft) delivered in 2024. However, output is projected to drop to just 81,000sq m (870,000sq ft) in 2026. This includes a 27,000sq m (290,000sq ft) unit in Dublin Airport Logistics Park, originally acquired for occupation by Frasers Group on a build-to-suit basis, but is now being marketed for rent in advance of practical completion in the fourth quarter of 2026.
This year saw the commencement of two brand new developments – Iput’s 232,000sq m (2.5 million sq ft) Nexus Logistics Park in north Dublin and Mountpark’s 93,000sq m (1 million sq ft) Grange Castle West in south Dublin.
[ Industrial and logistics sector reports strongest take-up in 18 months - CBREOpens in new window ]
Developers have become cautious toward new speculative development, amid continued economic uncertainty and rising construction costs. New Building Control (Amendment) Regulations introduced on May 1st, 2025, requiring sprinkler systems for racked storage above seven metres, along with additional fire-safety enhancements, have significantly increased build costs. These costs are being passed through to tenants in the form of higher rents. Developers who secured Fire Safety Certificates before the regulatory change now benefit from a cost advantage when delivering new space.
Rent trends
Prime new-build rents increased from €13.00 to €13.90 per sq ft in 2025, but are expected to reach €14.50 per sq ft early in 2026, and may rise to €15.00 per sq ft by year-end. Smaller new-build and refurbished units, ranging from 3,000 to 10,000 sq ft, are achieving €18.00-€20.00 per sq ft. This is the first time since 2007 that new-build units of this scale are considered viable by developers.
Investment
Investment activity was muted in the first half of the year, due to a scarcity of available assets. The largest transaction was ICG’s €65 million acquisition of a 41,340sq m (445,000sq ft) industrial portfolio in Park West Business Park from Harcourt Developments. However, the market came to life in the latter part of the year, with the launch of some hotly anticipated investments. Henderson Park brought Horizon Logistics Park to market, comprising 167,000sq m (1.8 million sq ft) of warehousing and 81 hectares (200 acres) of net development land, at a guide price of €550 million. This generated strong domestic and international interest. A sale is anticipated in early 2026.
EQT Real Estate also launched a €230 million portfolio of 31 warehouse assets totalling 111,500sq m (1.2 million sq ft), with a preferred bidder expected before year-end. Meanwhile, Iput agreed the sale of the North Gate Portfolio, for a figure reported to be approximately €60 million, with completion likely in the new year.
Ireland’s industrial and logistics property market continues to attract international capital, both for investment and development, drawn by strong rental growth, low vacancy and steady demand.
Kevin McHugh is a director of Harvey.
