Office take-up in Dublin remains low due to Brexit: report
More than 135,000 sq ft of office space in Dublin has been taken up exclusively due to Brexit, a new report has found.
However, since the referendum on June 23, 2016, companies moving to or expanding in the Republic's capital have let space for their workers at relatively low volumes, according to the latest market overview by property group Knight Frank.
"While the Dublin office market has more to gain than any other European centre from Brexit, given the number of company announcements, it should be noted that Brexit-related office take-up has been quite low so far," Knight Frank stated.
"We estimate that 135,000 sq ft of take-up in Dublin can be directly attributed to Brexit, although this excludes the 10 companies that have taken space in co-working locations.
"The harder the outcome of Brexit, the more likely we are to see announcements translate into a significant number of jobs on the ground in Dublin."
Despite the low take-up from UK firms moving to the Republic, the Dublin office market has gone from strength to strength in the opening quarter of 2019.
In the first three months of the year, 1.4 million sq ft of office space was transacted, 85% ahead of the take-up achieved in the same period last year. The market was dominated by technology, media and entertainment, and telecoms (TMT) companies, as well as state sectors.
The top five deals for office take-up were Salesforce's agreement for its new office in Spencer Place, the Central Bank of Ireland's move for No 4 and No 5 Dublin Landings, the Office of Public Works' deal for the Distillers Building in Dublin 7, Facebook's expansion at Nova Atria in Sandyford, and DocuSign's new Hanover Quay space.
But the opening quarter was slower than anticipated for office sales. "Around €278.1m worth of office investment transactions changed hands in Dublin during Q1, placing it approximately in the median of quarterly investment witnessed over the last five years," the report said. Just one deal of over €100m had been made.