Dublin office space contracts due to demolitions

A report says almost 40,000 sq m has been de-commissioned

Dublin office space contracts due to demolitions

The Exchange Building in Dublin's IFSC. An older building was demolished to make way for this new build | Image: Savills

A new report has found available office space in Dublin has shrunk.

Property firm Savills say this is due to large-scale demolitions of older buildings in the second half of the year.

A report says over 32,000 sq m of new office space was delivered in that time.

But an even greater amount of space, almost 40,000 sq m, was de-commissioned during the same period.

"The net effect was to cause Dublin's office stock to shrink by around 8,000 sq m", it says.

 It says plans are already underway to re-develop the demolished properties into bigger office blocks.

According to research, the average age of the withdrawn buildings is 30 years, while the average size is 5,641 sq m.

The report also says there is "keen demand" for office space due to the strong economy and rapid jobs growth.

Charlemont Exchange on Charlemont Place was vacated to allow a complete refurbishment and the addition of two new floors | Image: Savills

"With demand exceeding new supply the amount of vacant space on the market reduced by 9,500 sq m and the vacancy rate now stands at 9.2% - although vacancy rates of less than 1% prevail for Grade A buildings in the best business locations."

Commenting on the research Andrew Cunningham, head of offices at Savills, says: "Demand for office space across Dublin remains robust.

"With space in fringe locations such as Dublin 1 and Dublin 7 now being absorbed, the suburbs - such as Dublin 18 - are enjoying renewed demand from office occupiers, a trend which will continue in the short-term.

"Unsurprisingly, however, demand is weighted towards the central business districts of Dublin 1, 2 and 4 - and the market is responding to this. 4.2m sq. ft. of office space is currently under development in Dublin, 83% of which is situated in the central business district."

Earlsfort Terrace was vacated to allow a complete refurb and the addition of two new floors | Image: Savills

Mr Cunningham also noted that 46% of office developments in the central business districts of Dublin 1, 2 and 4 are pre-let.