This year the Dublin suburban office market showed cautious signs of improvement.
While the city centre remains the dominant location, 23 per cent of office deals transacted this year to date were located in the suburbs. This office sector is holding its own, with a particular focus across the market on new, more sustainable green buildings coming from ESG-motivated occupiers. In the next 12-24 months, demand in the suburbs will also come from value-focused occupiers who wish to capitalise on rents that are almost 50 per cent cheaper than their central business district (CBD) counterparts, but without making concessions on general building quality.
The emerging issue for the suburban office market in the near future is the total lack of development pipeline, which inevitably will start to push rental levels upwards as vacancy tightens for prime suburban office stock. This will likely lead to redevelopment or refurbishment opportunities for existing, well located but lower grade suburban office stock, where rents are facing downward pressure. These are struggling to attract modern tenants seeking strong sustainability and amenity credentials.
The total take-up in the Dublin suburban office market year to date equates to 46,342sq m across 43 deals. This is a significant increase of 28 per cent on 2024 take-up levels. The average letting size is typically under 1,000sq m, with professional and financial service companies being the dominant occupier type.
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Prime suburban office rents range between €300-€376 per sq m per year. Best-in-class office buildings are achieving rents in excess of €344 per sq m. Car parking spaces can be rented for as much as €2,000 each annually in locations such as Sandyford where demand remains high. Typical lease terms are 10-15 years with tenant break options at year five. As supply of brand new office stock continues to tighten, it is possible these break options will be extended out to seven to eight years. Tenant incentives remain attractive and – depending on the lease length, tenant quality, building and location – can range from 12-24 months from lease commencement.
Despite fewer big-ticket suburban deals compared to the CBD, the largest suburban office deal so far this year was in the north suburbs. Aer Lingus agreed to lease One Dublin Airport Central at Dublin Airport, extending to 7,541sq m. This lease was signed in the third quarter. Another notable deal in 2025 includes AIB’s commitment to lease 7,182sq m in Block B, Central Park, Sandyford.
In the southwest suburbs, two notable sales transacted in the first six months of the year in Citywest Business Campus. The first, 9 Riverwalk, extending to 2,300sq m was, acquired by a Swiss based company, while 3008 Lake Drive, extending to 2,124sq m, was acquired by a private Irish investor.
In summary, we expect increased occupier demand in 2026 in key suburban locations, where high-quality office stock still exists, with potential also for moderate rental growth on certain office schemes.
Keith O’Neill is executive director and head of lettings and sales at BNP Paribas.
