An Economic and Spatial Plan for Limerick Appendices

Limerick 2030 An Economic and Spatial Plan for Limerick
Office
The Office Market in Ireland showed a strong increase in demand in 2011, with a number of large
transactions taking place. Again, however, this is largely focussed on Dublin and a number of key
occupiers entering the market (e.g. Google). Yields are still at a 10 year high, at around 7.5% in the
prime Dublin locations, with Cork at c. 7.85%. Rents in Dublin vary wildly, depending on location,
from c.€140-€320 per sq.m. in some locations. Rents in Cork appeared to show positive signs of
growth, with rates of €170-€200 per sq.m. expected in good locations. The quality of the stock, the
size of the floorplate and the relative prestige of the location are all key determinants on whether a
building is occupied. Low spec. fit-outs in off-prime locations are still very weak. Demand is
expected to increase in the prime locations owing to an increased take-up of the best stock.
Outside of the Dublin market, however, problems still remain.
Industrial
The Irish Industrial Market has shown increased signs of recovery. Although rents have dropped from
2006 levels and yields have continued to increase, the rate of take-ups, while still down year on year,
showed signs that the decreases had abated during 2011. 27 Prime rents in the Dublin market in 2011
were at €70/sq.m., down 9.9% on the 5 year high, and yields were at 8.65%, a 10 year high. Domestic
demand is strongly increasing, with the export sector leading the way in this regard. FDI take-up is
not as strong, with a focus now on office space for this sector of the market. It is, however, a key
player in the Industrial Property Market. Leasing preferences in the market tended towards smaller
spaces, 400-800 sq.m. as larger unit supply is becoming limited. 28 The supply of larger industrial
spaces has been negatively affected by the lack of available credit, as there remains a pipeline of
industrial space in extant planning permissions in various locations. Without secured tenants,
however, speculative development in this market has halted.
Limerick Market Review
The Limerick Property Market has not performed well over the past few years, much like the rest of
the country. A depressed economic outlook meant that there have been relatively few large
transactions in the past few years. Problems in compiling data mean that there is a large reliance on
anecdotal evidence in certain sectors of the market. City Centre vacancy rates are running at
around 17.7% for ground floor commercial premises, with the Office Sector reporting a vacancy rate
of around 22% in 2012. A large number of prominent vacant sites stand out in the City Centre, such
as the Opera Site and the site of the former Dunnes Stores on Arthur’s Quay. There are also a
27 Chushmann & Wakefield, “Marketbeat: Ireland Industrial Snapshot” Q1 2011
28 Ibid
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