The commercial property market in the main cities is strong. Rents are rising fast and reviews are approached with trepidation. The main drawback is the shortage of available land. Many auctioneers say continuing increases in residential prices mean that the amount of land left for other forms of development is a problem.

In Cork, O'Flynn Construction recently broke a record in the city when it paid a reported £15 million for 100 acres at Mount Oval. This is expected to be developed mainly for houses. These kinds of prices mean that retail and office developments may come second when developers look at the bottom line.

John Downing, of Cohalan Downing & Associates, says the lack of serviced land is the main problem facing the commercial and industrial property sector in Cork. And in the other main cities, the lack of options in terms of prime space is a problem for tenants not prepared to move into areas which have no track record.

Another problem is traffic and a general lack of infrastructure. Senator Fergal Quinn, managing director of Superquinn, which is expected to anchor the Castletroy shopping centre in Limerick, says car-parking is a central issue when deciding upon a retail site. The large number of new hotels being built means further calls on space. A number of developers were looking to acquire the recently-sold two-acre Guys site in Cornmarket Street in Cork for retail and office developments, for example - but it is likely to be developed for a hotel.