Brexit to drive up office rental costs in Dublin
The cost of office space in Dublin is set to rise this year as demand outstrips supply. The consensus is that 2018 will see higher rents as supply tightens in the face of intense competition among potential occupiers.
While real estate company Knight Frank believes developers with the capacity and funding to commence construction in the Republic's capital will take advantage of the opportunity to secure early pre-lets, the quantum of development is unlikely to be sufficient to depress rent levels in Dublin's Central Business District (CBD) or its immediate environs as major international employers in the technology sector continue to dominate the city's post-Brexit office market.
These include Google and Facebook which are on track, between them, to occupy 4% of all commercial office space in 2018.
Knight Frank's Declan O'Reilly expects further interest to come from US companies seeking to relocate their European operations from London to Dublin as a result of Brexit. Vacancy rates are now at their lowest recorded since 2000.