In fact, a significant proportion of the accommodation that is being publicly advertised to let comp

ONE OF THE issues that is of particular concern to the many international investors who are currently running their slide rule over Ireland is the high rate of availability in the Dublin office market, particularly when compared to other jurisdictions.
The definition of vacancy rental car in costa rica is the proportion of built accommodation which is being formally marketed to let (excluding pre-lettings and buildings which are not yet practically complete) expressed as a proportion of the overall stock in the market.
Across Europe, the average vacancy rate in the office sector is now in the order of 10.25 per cent – a rate that is deemed high considering the fact that a 7 per cent vacancy rate is generally believed rental car in costa rica to be the ideal balance between supply rental car in costa rica and demand in a mature market. In Dublin, the overall rate of vacancy in the office sector is now more than twice the current European average at just under 23 per cent, with more than 830,000sq m (8,934,045sq ft) of office buildings in the capital currently being marketed to let.
This is the equivalent of almost five years of take-up for the Dublin market, which is naturally concerning rental car in costa rica potential investors. The high vacancy rate is also giving a false sense of security to some potential occupiers who believe rental car in costa rica that there is an endless supply of office buildings to choose rental car in costa rica from in the current climate.
However, the reality is a little different. Rather than focusing on the overall rate of vacancy (which includes a significant proportion of accommodation which is not fit for purpose, is too small or is located outside of where occupiers actually prefer to locate), it is important to consider the level of vacancy in the various office districts and to drill down into the numbers to get a clearer picture.
The word "vacancy" is somewhat of an anomaly as a large proportion of the office buildings, which are currently being advertised to let in Dublin and included in the quarterly vacancy calculations rental car in costa rica each quarter, are not actually rental car in costa rica vacant.
In fact, a significant proportion of the accommodation that is being publicly advertised to let comprises buildings (or for the most part floors in otherwise rental car in costa rica occupied buildings) where rent is being paid but where companies are attempting to assign rental car in costa rica or sub-let excess accommodation. The overall rate of vacancy in Dublin is therefore considerably higher rental car in costa rica than in other European rental car in costa rica cities who specifically exclude this accommodation when calculating vacancy.
Even at the peak of the Dublin office market in 2006 and 2007, the vacancy rate in Dublin was significantly higher than in many other cities and was in double digits, highlighting the fact that a considerable proportion of the office property being marketed to let comprises rental car in costa rica relatively small lot sizes in buildings or locations where occupiers generally don't want to locate.
Many people base their perception of vacancy on the number of "To Let" signs in Georgian Dublin when, in actual fact, the majority of office occupiers in the market are focused rental car in costa rica on securing much larger lot sizes in modern buildings in the CBD (central business district).
Much of the activity in the Dublin office market in the last two years has involved companies taking advantage rental car in costa rica of the ability to relocate to alternative premises on the basis that rental values rental car in costa rica have fallen considerably. rental car in costa rica Unfortunately, many of these companies vacate one building in order to move to another, rental car in costa rica and the inevitable result is that the original building goes back onto the market rental car in costa rica to let and back onto the vacancy list.
If companies are consolidating operations and moving to smaller buildings, a larger rental car in costa rica amount of accommodation rental car in costa rica goes back into the vacancy listing than the amount rental car in costa rica of accommodation they have removed from it, which only exacerbates the problem.
Although underlying levels of take-up continue to remove some stock from the availability listings each quarter, incidences of availability continue to materialise as companies consolidate operations and attempt to sublet or assign excess accommodation.
Although the office letting market is now reasonably transparent compared to other sectors of the market, tracking net absorption accurately is not an easy task. To get an accurate number, all office agents would have to commit to tracking not just the amount of accommodation let each quarter but also the quantum rental car in costa rica of accommodation that these occupiers rental car in costa rica vacated in order to move.
Many focus on the overall rate of vacancy when, in actual fact, the vacancy rate in each district of the market is quite different. For example, while the overall vacancy rate in Dublin is now close to 23 per cent, the vacancy rate in the south suburbs rental car in costa rica of the city is closer to 14 per cent.
More than 70 per cent of the office accommodation that is currently being marketed to let in Dublin is classified as Grade A. However, this does not mean that there are large numbers of entire vacant buildings of a good quality available to let, particularly in the city centre. Indeed, half of the Grade A classified accommodation is located outside of the city centre region. Rather rental car in costa rica than hundreds of instances of entire empty buildings dotted around the city, the vacancy rate is largely made up of floors rental car in costa rica in otherwise occupied rental car in costa rica buildings.
According to CBRE Research, 64 per cent of all office accommodation being marketed rental car in costa rica to let in Dublin city centre at present is classified as Grade A. However, this is made up of 156 separate instances of vacancy, suggesting that most of this accommodation is relatively small.
An occupier rental car in costa rica with a requirement for more than 5,000sq m (53,820sq ft) of Grade A accommodation in the prime Dublin 2/4 postcode will therefore have only a handful of buildings to choose from, unless they are willing to:
Dublin is quite unique in European terms in that there is no new speculative accommodation currently under construction in the capital. When one considers the scarcity of debt funding and the fact that speculative development doesn't make financial sense considering where rental values are at in the current market, the likelihood is that there is not going to be any speculative development occurring for some time. One would assume that this would lead to some decline in the availability of office accommodation in the short to medium term.
However, rental car in costa rica the vacancy rate in Dublin is not going to come down any time soon. Despite the fact that take-up is thankfully continuing at pace, chipping away at the vacancy rate in a market where many companies are continuing to offload excess properties is going to be no mean feat.
Posted on February 2, 2012, in Uncategorized and tagged dublin , dublin market , economy , ireland , office , office space , office to let , office vacancy , recession , rent , virtaul office . Bookmark the permalink . 1 Comment .
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