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Speculation that Dublin could benefit from Brexit-related office relocations escalated following Theresa May’s commentary in Jan 2017, seemingly suggesting that passporting may not be an option for UK based financial service companies
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Despite reports to the contrary, Dublin has more than enough office stock in the pipeline to cater for any additional demand from Brexit relocations
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Dublin office market extends to > 3.7m m2 (40m sq.ft.) of which > 60% is located in the city centre
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Annual average take-up in the Dublin office market over the last 10 yrs was approx. 182,000m2 (2m sq. ft.) pa with total 2016 take-up reaching >246,000m2
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⅓ rd of 2016 take-up comprised US companies with a further 11% of take-up by UK companies
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Overall office vacancy rate @ end Q4 2016 was in the region of 6.6% which compares well with other competing cities
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As @ end Q4 2016, there was approx. 250,000m2 (1.37 x Dublin’s annual average take-up in the last 10 yr period) of office accom. available to let, contradicting the view that there is no office stock available to let in Dublin at present
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In addition to vacant stock, there is >360,000m2 (3.87m sq.ft.) currently under construction in the city centre in 27 individual schemes, of which 20% is currently reserved
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This equates to just >2 yrs. of average take-up and will add approx. 10% to Dublin’s office accom. stock
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Of the >360,000m2 (3.87m sq.ft.) of office accom. currently under construction, 60% is due for completion in 2017 with a further 39% due for completion in 2018
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31% of the stock that is under construction and due for completion in 2017 has already been pre-let
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Meanwhile, a further 543,000 m2 (5.84m sq.ft.) in 48 individual schemes has a grant of planning permission & could also be commenced if required
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While a further 48,323m2 (520,171 sq. ft.) of stock has been applied for in the city centre
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In summary, the visibility on potential delivery should give comfort to potential occupiers that Dublin is more than capable of providing sufficient high quality office accommodation if required
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The bigger issue for Gov to tackle, which is already being addressed, is to ensure that there is sufficient housing & adequate infrastructure to facilitate this additional demand, if and when it materialises