Vacancy rate of Dublin industrial properties falls

Vacancy rate of Dublin industrial properties falls

The vacancy rate in Dublin’s industrial property sector has fallen for the first time since Quarter 3 2011, according to the latest Savills report.

It said that Q2 2013 is only the fourth quarter that the vacancy rate has fallen since 2008 – signalling a marked upturn in the fortunes of the industrial property sector.

The property experts say that, from their analysis of the market, they can see that sales transactions accounted for 41% of all transactions in Q2, 2013 up from 20% in Q1 and up from 14% for the same period in 2012.

This heralds a renewed confidence returning to the sector and purchasers see value for money when comparing prices to the cost of building, Savills say.

“The fundamentals of the Industrial sector are beginning to improve as vacancy rate falls in Q2, 2013, take-up levels exceed 50,000 m2 for two consecutive quarters in 2013 and the number of sales increases to 41pc of the total number of transactions. The vacancy rate may finally be showing some signs of stability having fallen in Quarter 2. The highest proportion of sales transactions since 2008 was recorded in Quarter 2 and is a sign that prospective buyers believe now is the right time to buy, particularly as sale prices are a fraction of the cost of building,” said Gavin Butler, Director, Industrial, Savills Ireland.

He added that the increase in the number of sales transactions is likely to continue as buyers see value for money and bank finance becomes more available.

“The overall take-up for 2013 is likely to be between 175,000 – 200,000 sq.m and we foresee that prime capital and rental values will remain steady for the remainder of 2013 with further declines likely for secondary and tertiary stock. Prime rents are also stabilising at €45 – €55 per sq. m. per annum with further with declines likely for secondary and tertiary stock.”

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