_Dublin: TMT sector drives office take-up to record levels in H1 17

Despite the uncertainty of Brexit-related impacts, Dublin’s economy has continued to grow at a solid pace. Over the next four years, Dublin is forecast to have the fourth fastest growing economy in Europe. Strong labour market conditions have led to unemployment rates of around 6% – the lowest in nearly a decade. The Information and Communications sector is forecast to contribute nearly 20% to Dublin’s economy in 2017. 

The significance of this sector is evident in Dublin’s occupational market, as Technology, Media and Telecommunications (TMT) occupiers were once again the most active in H1 2017, accounting for a 45% share of the total office take-up. Occupier activity reached a new high in Dublin and was supported by sizeable deliveries. 

A number of buildings reached practical completion in the first half of the year, including the Central Bank’s new headquarters in Docklands and LinkedIn’s new headquarters on Lad Lane. Prime rents have remained stable at €60 per sq ft, while the vacancy rate declined to 7.9% having risen to 8.3% between Q4 2016 and Q1 2017.

Dublin’s office market has had an influx of serviced operators. Not that long ago, start-ups were hampered for office space in Dublin but a cluster of co-working hubs, such as the Tara Building, have recently opened their doors. The Dublin BIC and London co-working provider Huckletree are also currently establishing new hubs in Dublin. 

Further growth in this market segment will accelerate on the back of the rise in tech sector employment, a supportive start-up environment, the increased use of co-working space by corporate occupiers and declining vacancy rates for small offices. With Brexit negotiations looming in the background, London based financial firms are beginning to actively implement their contingency plans. JP Morgan was one of the first companies to confirm its plans to expand its operations and staff in Dublin.

Barclays and Bank of America have also agreed on Dublin as part of their relocation strategy. In addition, some roles from Morgan Stanley and Citigroup are expected to move to Dublin.

Read the full Dublin Office Market Outlook Q3 2017