CB Richard Ellis expert predicts Dublin new office supply to be halved
Property investment company CBRE have predicted the supply of new offices in Dublin will reduce from 85,000 sq m to 32,600 sq m
Economist with CB Richard Ellis, Patrick Koucheravy has forecast the supply of Dublin office space will halve within the year and eventually plummet to zero by 2012.
According to a report by the Irish Independent, he predicts there will be 85,000 sq m of new Dublin city office space available by the end of this year and just 32,600 sq m of office space available by 2011. After this time, he believes there will be no new office space available in Dublin as 2012 commences.
The prediction was made recently at the annual convention of the Institute of Professional Auctioneers and Valuers, in Donegallast.
Mr Koucheravy predicts that 39 per cent of new Dublin office lettings for 2010 have already been pre-let and the supply for 2011 has already seen 24.5 per cent pre-let take-up.
Commenting on the market analysis, he added, "As the market is hugely dependent on economic recovery and job creation, take up is expected to perform below trend again this year and provincial markets are very weak."
However, with the economy stabilising and competitiveness still enduring, there is future hope for the Dublin office market: "There are a number of new entrants in the office market and the decline in prime rents has made Dublin much more competitive compared to similarly-sized markets in the UK."
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