CBRE launch their September 2016 bi-monthly report on the property market

Commercial Property Bi-monthly Report Sept 2016

  • Brexit concerns appear to have had minimal impact, indeed there has been increased demand for Irish CRE & an increase in occupier enquiries as a result of the referendum
  • Almost 90,000m2 of office take-up recorded in HI 2016 & prime office rents remain stable at approx. €619psm  (€57.50psf)
  • Currently more than 378,000m2 of new office stock under construction in the city centre (29 schemes)
  • Take-up in the industrial sector remains compromised by a shortage of modern accommodation with H1 2016 take-up volume down 35% on H1 2015
  • Prime industrial rents on target to reach €94psm (€8.75psf) by yr-end & prime industrial yields at 5.5%
  • Noticeable increase in cross-border shopping in some border towns as a result of Sterling weakness
  • Considerable increase in retail planning activity & evidence of increased provincial rents
  • Total returns up more than 3% in Q2 2016 with Investment in Irish CRE now even more compelling as a result of recent 10 yr bond rate declines
  • Prime yields remain steady although there may be some softening in pricing for secondary assets in due course
  • More than €400m of hotel transactions due to complete in the coming months
  • 1,000 hotel rooms to be under construction in Dublin by yr-end
  • 13 Dublin pubs totalling almost €18m sold H1 2016
  • Only 6,642 housing units delivered nationally in H1 2016, of which 1,993 units were delivered in Dublin
  • Visible increase in development output anticipated from this point forward in particular build-to-rent resi schemes & purpose built student acc.

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