Industrial demand rises

Signs of economic recovery and pick-up have fed into the demand for well-located industrial buildings, with a marked level of activity over the past two years.
Industrial demand rises

So says agent Brian Olden of Cohalan Downing in Cork city, as he brings a 32,000 sq ft warehouse building on 1.9 acres in Cork’s Little Island to market, guiding it at €1.3 million.

Market watchers will be keen to see how this year’s take-up of industrial space performs, following last year ‘s bumper take-up, which was the strongest performance nationally and in Dublin (at 639,000 sq ft) since 2007.

Q1 2016 take up in Dublin, however, showed a dip of 23% over the same period in 2015, so Q2 2016 levels will be keenly analysed when available in coming weeks to see if that was a temporary issue, attributed to a shortage of sufficient high quality stock, as was suggested by DTZ.

Meanwhile, freshly listed in Cork with Cohalan Downing is O’Donovan House at Courtstown, Little Island.

It comprises a detached warehouse currently laid out in two sections, but easily made back into one, says Mr Olden.

It’s been the HQ/warehouse for more than a decade for the 40-year old off-licence chain O’Donovans, which the agent says is scaling back its previous large number of retail outlets, concentrating on some core-located Cork ones as well as on online sales.

“It’s too big for their needs, but they are actively scouting for 8,000-10,000 sq ft of replacement space,” Mr Olden comments.

The quality, location and site size will draw attention to O’Donovan House, predicts colleague Rob Coughlan of Cohalan Downing, noting it’s ideal for logistics firms and has good circulation spaces and further scope, thanks to its 1.9 acres.

In all, there’s a total of 32,854 sq ft, currently divided as two warehouse units with 20’ eaves but suitable for single occupation with two dock levellers and four roller shutter doors for freight distribution.

The building includes an office element of 2,700 sq ft; there are two warehouse elements of 16,780 sq ft and 10,584 sq ft, plus a mezzanine of 2,750 sq ft.

Other companies in the vicinity include DB Schenker, Fastway Couriers, Ballymaloe Country Relish and Kuehne & Nagel, who relocated from the Airport Road where their former premises is now a Toyota/Lexus garage.

Location is Courtstown, Little Island, six miles from Cork city, past the Jack Lynch Tunnel and Dunkettle interchange and adjacent industrial parks and business parks including Euro Business Park, East Gate Business & Retail Park, Sitecast Industrial Estate, GB Business Park, Courtstown Industrial Estate, an IDA Industrial Park and a proposed ‘hyper-scale’ JCD data centre.

Meanwhile, Cork County Council officials were told this week that the upgrade of the Dunkettle interchange was a top priority in the region for Transport Infrastructure Ireland (TII), taking precedence over the Macroom bypass and new Ringasksiddy/Port of Cork access road.

TII said they hope to appoint a contractor for the Dunkettle interchange in 2018, with work likely to start in 2019: it’s considered vital not only for commuters who get hit by long delays at the Jack Lynch tunnel, but also for ease of transport of industrial and pharmaceutical goods, as well as being a key to further future development of major residential landbanks at Dunkettle, Ballinglanna and points east of Cork city including Glanmire, Glounthaune, and Midleton.

DETAILS: Cohalan Downing, 021-4277717

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