There's a  logic to the boom in logistics and distribution markets - take your pick from pandemics, online retailing, Brexit and economic recovery

Ireland's bustling industrial sector 'sheds' its dowdy shed image as property market's best  performer

Shedding the old image as industrial/logistics sector steels itself for futher growth

The industrial, warehouse and logistics market had a strong year, much better than what we might have expected at the start of 2021. The industrial market was the least affected property sector by the pandemic and it benefitted from changing occupier requirements due to Brexit, pandemic related demand and strong online retail sales. Supply chain reconfiguration has also contributed to demand. Some industrial occupiers now have higher stock levels in an effort to mitigate supply chain delays and in some cases this means that they have required more warehouse space.

Strong occupier demand in conjunction with extremely low vacancy rates have resulted in accelerated rental growth and increased new development activity. The vacancy rate for industrial property in the Cork metropolitan area peaked at around 20% in 2012 and there was a gradual reduction to 12% by Q4 2018. Since then the vacancy rate has fallen sharply year on year as existing stock was taken up and we estimate a current vacancy rate in the region of 2.6%.