At the current rate of lettings there is about 10 years of supply, and that’s before factoring in any new space in the pipeline, or old space being freed up.
Industrial take-up to drop by 33% in 2009
irishtimes.com/newspaper/com … 04818.html
TAKE-UP OF industrial space in the greater Dublin area this year is expected to reach 100,000sq m (1.076 million sq ft) – a drop of 33 per cent on the volume leased in 2008, according to a study by estate agent Savills.
The report estimates that only 84,000sq m (904,168sq ft) of space was leased or sold up to the end of September because of the economic slowdown and readjustments in the property market.
Not surprisingly the volume of empty space has increased significantly and currently stands at 985,000sq m (10.6 million sq ft). This figure is 42 per cent higher than in 2008 when about 692,000sq m (7.448 million sq ft) was available.
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Gavin Butler of Savills noted that the higher vacancy rate is being driven mainly by freed-up space that has come on the market since last January.
A great many tenants were exercising break options, he said, and were not renewing leases when they expired.
Instead, they were consolidating their operations into existing premises to reduce costs. Apart from these retrenchments, there were also fewer new lettings negotiated this year.
Much of the empty space has come on the market in Dublin south-east and the south-west.