Office and retail rents in Munster, driven by Cork City, will start to play catch up this year with sky-high costs in Dublin, an expert group has said.
Prime A office rents by the end of December had reached €645 per sq metre in Dublin; €260 sq metre in Munster; and hit €150 per sq metre in the rest of Leinster.
Now, Chartered Surveyors Ireland project those prices will rise again this year — with Cork City outpacing the rest of the State.
Prime A rents across Munster will rise on average by 7%, and those in Cork will climb even faster, while Dublin rents, which have soared in recent years will rise 5%, and by 1% in the rest of Leinster, according to the surveyors. Two-thirds of the chartered surveyors predict office space in Cork will rise this year; three-quarters
of its survey
say take up levels will rise; and almost all say that vacancy rates in Munster will decrease.
For prime retail rents, Dublin costs reached €6,000 per sq metre; those in Connacht-Ulster hit €1,150; and those in Munster have reached €1,100. The surveyors say those retail costs will rise 6% and 5% in Dublin and Munster, respectively, and by 6% in Connacht-Ulster.
“Office investment was the most active commercial property sector in 2017, particularly in Dublin where there was a strong take up of office space in 2017. Cork has also experienced a significant increase in demand for office accommodation, particularly in city centre and prime business park locations,” the
Commercial Property: 17