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By Chamber Press Office, 26 January 2018
Dublin Chamber has refuted comments in thes media regarding the amount of office space being delivered in Dublin.
According to Dublin Chamber CEO Mary Rose Burke:
"Just 3 years ago, the Dublin office market was on the floor. Vacancy rates in the city centre were at an all-time low. The result was two-fold: rents spiralled upwards (in 2014 alone they rose by 49%), while companies who arrived in Dublin from abroad to suss out office locations were lucky to find even one premises to view.
"Fast forward to 2018 and office take-up in Dublin is at record rates - in-line with the economic recovery. Only a modest amount of this activity is Brexit-related. The main drivers are technology, media and telecommunications (TMT) firms, which accounted for almost half of 2017 take-up. Property firms in Dublin also report lots of indigenous growth from all sectors.
"Much of the demand being seen in Dublin currently is for large space. In 2017 there were 8 deals of more than 100,000 square feet. This type of space is only available in modern offices, which highlights the importance of new building to the market. There's no sign of a let-up either: in Q4 2017, 7 of 10 biggest lettings were for buildings currently under construction.
"Office space in Dublin must remain affordable. To keep rent levels low, we need a steady supply of space for both incoming companies and also indigenous expansion. Dublin recently ranked as the 34th most expensive city in the EMEA when it comes to office space. The affordability of office space is one of Dublin's trump cards when comes to attracting FDI, in an increasingly competitive world. If Dublin isn't able to offer affordable office space to companies, that business will not simply flow to other cities in Ireland, but to other competitor cities abroad such as Amsterdam, Brussels, Warsaw or Berlin. These cities all rank best when it comes to availability and affordability of office space. In the same way that Ireland is working hard to protect its 12.5% tax rate and to maintain our strong talent-base, our infrastructure must be enhanced also. Contrary to what Denis O'Brien might think, the last thing that Dublin needs now is a shortage of office space."