Mid-western office market outperforms the capital

On a rolling 12-month basis, over 22,700 sqm had been occupied in the year to the end of March 2024, showing a healthy level of performance relative to the past number of years.

As a result, the amount of space available has continued to decline since Q4 2022 to 24,600 sqm, bringing the percentage of stock available to 6.7pc. which is less than half the 14.8pc availability in Dublin.

Limerick rents range from €296 for prime existing offices to €431 per sqm for prime new build, with the latter up from €403 per sqm since Q1 2023.

These are very competitive compared with Dublin where prime headline rents remained at €673 per sqm – unchanged since June 2022.

A notable feature of the opening quarter was US telecommunications giant Verizon taking up space in three locations at Bishop’s Palace, Cecil Street and Shannon Street when it signed a 15-year lease for 7,835 sqm of space at the 1BQ office scheme newly developed by local firm Kirkland Investments.

Suburban locations such as the National Technology Park, Castletroy, also continue to attract occupier interest.

However, Limerick availability ratios tend to be lower than in the rest of the region, with the rate for Limerick city centre at 2.8pc, while the suburbs had a lower rate of just 1.1pc.

At the end of the quarter, close to 1,200 sqm of available space has been reserved across three locations.

Sean Coyne of Cushman says that a standout characteristic of the market of late is the significant increase in construction activity.

Three additional construction projects are now underway, including Opera and Towlerton, which combined will add an additional 26,500 sqm of prime office space along with the 7,500 sqm nine-storey development at Bishop’s Quay (1BQ), which is due for completion this year.

These schemes will considerably enhance Limerick’s office stock, providing much-needed prime office space for the region.