Dublin's industrial and logistics property sector experienced significant growth in the first three quarters of 2023, as sustained demand pushed take-up to 690,000 sq ft across 22 deals in Q3, reports property advisor, Savills Ireland, in its latest market report. This robust activity places the year-to-date take-up at 2.3m sq ft, marking an 11% increase compared to the five-year average.

A promising list of over 600,000 sq ft in reserved deals, coupled with two sizable active requirements exceeding 400,000 sq ft each, indicates that Dublin continues to be a prime location for occupiers, even amidst ongoing geopolitical and economic uncertainties.

Reflecting on this trend, Gavin Butler from Savills Ireland commented:

"Dublin's unwavering attraction as a hub for industrial and logistics space is evident in the numbers. Even as the global landscape shifts, businesses recognise the strategic importance and potential of setting up in Dublin. Our current reserved list and significant requirements speak volumes about the confidence in the market.”

Highlight Deals:

• An 80,000 sq ft letting at Unit 20, Magna Business Park, emerged as the quarter's top deal.

• Silent Aire's Irish expansion continued with a 67,000 sq ft lease at S2 Park West Industrial Park.

• Freight-forwarding company BCS Xpress secured a pre-let at the newly completed N5 Horizon Logistics Park.

• Dublin Fire Brigade pre-purchased a 50,000 sq ft unit at A4 North City Business Park, with completion anticipated in H1 next year.

• Excellence, a food service specialist, finalised a deal for a 47,731 sq ft Unit G1 at Horizon Logistics Park.

Rent and Vacancy: As demand remains high and supply is constrained, rents are seeing steady growth. Prime rents increased to €13.00 psf in Q3 from €12.75 psf in q2, while secondary stock rents grew to €9.75 psf.

Vacancy rates saw a marginal rise from 1.6% to 1.9% in Q3, attributed to the market's addition of three large units. Block R at Aerodrome Business Park and the former Crown Paints space on Malahide Road are currently the two major vacant spaces, together accounting for 22% of available space. Unit R Aerodrome is reserved and expected to sign in Q4.

Location and Sector Insights: Take-up in the Southwest and Northeast locations nearly balanced out at 44% and 43%, a stark contrast from previous quarters where the Southwest led significantly. Industrial uses dominated take-up at 36%, driven by manufacturing, wholesale and business services. Logistics followed closely, with third-party logistics at 25% and first-party at 22%.