Dublin’s office vacancy rate rose to the highest in at least 18 years in the second quarter and may jump to 27 per cent in 2010 as new buildings are completed, according to a new report from CB Richard Ellis Group.
The vacancy rate rose to 21 per cent at the end of the second quarter from 12 percent a year earlier, the highest since CB Richard Ellis started compiling data in 1991.
Dublin had 718,000 square metres of empty office space with tenants looking for just 75,000 square metres.
In addition to buildings already under construction, developers have consent to build another 126,000 square metres of space by the end of 2010, the broker said.
The amount of space being built and which will be finished next year is less than half of the developments originally scheduled.
CB Richard Ellis estimates that a total of 171,000 square metres of office projects in the city centre have been put on hold.
Occupiers, led by public-sector agencies and business services leased 23,200 square metres of office space in the second quarter, 30 per cent less than a year earlier, CB Richard Ellis said.
Bloomberg