New figures released today show the Dublin industrial and logistics market will total 1.3 million sq ft in the first half of 2022.
Savills Ireland said 438,000 sq ft of industrial and logistics space was transacted in the second quarter of 2022 after a strong first quarter.
That figure is well below the five-year average of 714,000 square feet, but Savills noted that this may reflect the timing of the transactions, which were 33% above the five-year average in the first quarter of this year.
Figures today show that Dunnes Stores' expansion - which they leased 78,400 sq ft of space in Dublin Stadium Business Park - was the biggest transaction of the quarter.
The second-biggest deal this year was a pre-leasing by third-party logistics (3PL) provider GLS from developer Henderson Park.
The third largest deal was the pre-sale of the 70,000-square-foot Contrail House unit at Dublin Airport Logistics Park to Yourway for €17 million.
Savills pointed to an above-average number of transactions over 50,000 sq ft in the last three months, but added that the lack of transactions over 100,000 sq ft had dampened the number of transactions.
The company also reported a sharp decline in small transactions between 5,000 and 10,000 square feet, with only one unit of this size signed during the quarter, the lowest level since the global financial crisis, reflecting a decline in this range. tight supply
Head of research John Ring said it was clear that Ireland's strong demographics and biopharmaceutical industry would continue to drive demand.
“These deals highlight the synergy of a booming export market and the expansion of the logistics sector. While the value of pharmaceutical products in Ireland will only increase by 1% in 2021, exports of these products are up 26% from pre-pandemic levels.”
He added: "Indeed, while global growth will be slowed in part by disruptions to international trade in 2022, Irish exports are forecast to grow by 8.5% to 6.2% in 2022, according to ESRI summer forecasts."
