I believe (in cork anyhows) we have just started on the slippery slope downwards with commercial property.
THERE IS A HUGE AMOUNT OF NEW OFFICE SPACE BEING RUSHED TO COMPLETION!
I drive to work near douglas in the morning and they have really turned up the pace in building, i pressume to get these new units on the market and sold ASAP.
Really, they must be 1*10^6 square feet being built in cork.
Who the hell is going to fill it, i don’t know.
I don’t think you are wrong. We’ve got some thread going back at least a year on this topic alone.
DNG of daftwatch fame kindly included commercial listings upon my request.
See here :
I know for one Dublin Commercial Industrial listings have doubled since the Summer of 07
Interesting fact that has gotten zero attention is that Credit Card balances fell both in January and February. Although that would not explain the scale of a 10-12% fall in footfall in the City centre. How are the suburban centres faring?
There is a new shopping centre in Limerick at Coonagh Cross anchored by Tesco. It has been open since before Christmas and is a dead duck. I only go in there the odd time and there is never more than one or two tills open. Down the road though and Dunnes is flying it.
There are rumours flying around that everybody is pulling out of the new shopping centre (all the smaller units)
The reality is that none of these units are occupied yet despite Tescos being opened 6 months now.
Goodbody comments on commercial property, although mostly with reference to the UK.
Irish Financials; London office take-up in decline as retailers struggle to pay
Take-up of office space in central London fell by nearly a third in the six
months to March 2008, according to a report in this morning’s FT, based on the latest quarterly report from Jones Lang LaSalle. In the City of London office market, take-up was down 40% during the same period, and 60% in the Docklands area, due in the main part to a decline in demand from the banking and finance sectors which fell from an average of 32% of total take-up over the course of 2007, to 11% in 1Q08. This echoes reports in last Wednesday’s Irish Times of research from DTZ Sherry Fitzgerald highlighting slowing occupier demand from the financial sector in Dublin, with only 7% of take-up in the first quarter (versus an average of approx 30% in the last five years according to Jones Lang La Salle figures). With approximately 10,000 job losses predicted in the City of London, financial institutions are said to be “deferring relocation decisions and reining in headcount expectations”. Jones Lang LaSalle is now predicting a fall in prime rents of 2% over the course of 2008, with the possibility of bigger declines for larger office lettings as rent-free periods are being extended in the City and having an impact on figures. According to the agent, 7.3m sq ft of office space is due to complete in 2008 and 2009. The West End office market is however seen to be holding up as supply constraints are playing their part in that sub-sector of the office market.
In the retail space, this Saturday’s FT reported that retailers in the UK are
struggling to pay rents. The report indicates that various retailers are
requesting delays in rental payments and asking to pay on a monthly basis as opposed to quarterly. Whilst several retailers have been forced into administration so far including Sleep Depot, Dolcis, Empire Stores and The Works, others are curtailing their expansion plans, both of which could lead to an increase in voids.