Demand for office space down 7%

BUSINESSES putting expansion and relocation plans on hold has resulted in a drop in demand for office space in Dublin.

Demand is down 7% in the three months to the end of June compared with the first quarter of the year, according to realtor CB Richard Ellis.

It said sentiment has undoubtedly deteriorated in recent months as a direct consequence of global and domestic economic conditions. However, it said there are no signs of prime rents decreasing in the capital despite lease negotiations becoming very protracted and lease inducements increasing in the three months to the end of June.