Key Takeaways
- Dublin office market take-up reached approximately 42,800 sq m in Q1 2025, a significant increase from 17,500 sq m a year earlier.
- 75% of office space taken up in Q1 was in the CBD, with technology, financial services, professional services, and medical/health services accounting for three quarters of demand.
- Prime office rents in the CBD are forecast to rise to €700 per sq m, supported by a tightening supply-demand dynamic and a historically weak construction pipeline.
- Dublin industrial take-up improved slightly in Q1 2025, with 50,700 sq m leased and a low availability rate of 3.6%.
- Prime industrial rents stand at €145 per sq m, with 114,400 sq m under construction, much of which is pre-let or reserved.
- Retail led investment activity, accounting for 50% of all Q1 2025 investments, with €272m invested across 8 properties, up 288% on Q1 2024.
- Vacancy rates in retail continued to fall, with many principal destinations at or near full occupancy.
- Prime high street retail rents are forecast to rise by approximately 2% in 2025, with strong occupier and investor demand in key locations.
Economic Context
Ireland’s economy remains robust, with GDP forecast to grow by 3.9% in 2025 and 3.7% in 2026. Personal consumption is also set to rise, while the unemployment rate is expected to hold steady at 4.5%. Inflation, as measured by HICP, is forecast at 1.9% for 2025. Consumer sentiment has softened somewhat, but employment growth remains strong, with 71,400 jobs created in the year to Q4 2024 and unemployment dropping to 4.0% by December 2024. The CPI rose by 2.0% between March 2024 and March 2025.
Demand Overview
Office: The Dublin office market saw a robust start to 2025, with take-up of 42,800 sq m across 48 deals. Demand was well-distributed across sectors, led by technology (26%), financial services, professional services, and medical/health services. Major transactions included EY (5,100 sq m at Wilton Plaza), Apple (3,500 sq m at 4/5 Park Place), and Blackrock (2,000 sq m at Glencar House). 75% of activity was concentrated in the CBD.
Industrial: Q1 2025 industrial take-up reached 50,700 sq m, with continued strong demand and a low availability rate. Notable pre-let and reserved projects include Unit F1 at Horizon Logistics Park (15,100 sq m, pre-let) and Unit 5 at Grange Castle West (13,600 sq m, reserved).
Retail: Retail was the most attractive sector for investors, with €272m invested in Q1 2025, including the €220m Oaktree Portfolio sale. High Street properties also saw strong demand, with several transactions on Grafton and Henry Streets. New store openings from major retailers and active requirements from brands like Best Menswear, Regatta, and Skechers underscore continued occupier appetite.
Vacancy Trends
Office availability in Dublin eased slightly in Q1 2025, with the overall rate dropping from 16.5% to 16.2%. CBD availability remained stable at 17% (falling to 14% when excluding reserved space), with expectations for further tightening as the year progresses. The industrial market maintained a low availability rate of 3.6%. Retail vacancy rates continued to fall, with many key destinations at or near full occupancy, reflecting strong demand and limited new supply.
Rent Trends
Prime office rents in Dublin’s CBD are forecast to rise to €700 per sq m in 2025, supported by limited new supply and robust demand. Prime industrial rents are at €145 per sq m, with continued upward pressure due to low availability. In retail, prime high street rents are expected to increase by around 2% in 2025, with Grafton Street at €5,380 per sq m and Henry Street at €3,100 per sq m. Landlord concessions are not specifically noted, but limited prime stock is driving rental growth in key locations.
Construction & Supply Pipeline
The office construction pipeline remains weak by historical standards, with 165,500 sq m under construction at the end of Q1 2025—76% of which is pre-let or reserved. In the industrial sector, 114,400 sq m is under construction, with significant portions pre-let or reserved, including major projects in Horizon Logistics Park and Grange Castle West. In retail, limited new prime stock is contributing to falling vacancy rates and upward pressure on rents, with several large investment opportunities currently on the market.
