Following on from yesterday’s blog on traders shutting up shop due to high rent rates the latest Irish Auctioneers & Valuers Commercial Market briefing has said that annual take-up levels of office space in the big smoke is likely to drop by a whopping 75% this year.
The drop sees us going from an all-time high of 300,000sqm … take up in 2007 to a hoped take up of around 50,000sqm this year. We can all guess a few reasons for this massive drop, namely the current ‘economic climate’ / cloud that we are all under. It has been said that this is lowest level that Ireland has seen since the mid 1990’s and that its unlikely things will improve until sometime late 2010.
However it’ not all bad news. The report also shows that rents have dropped by up to 35% (in places) and that some leases are now leaning to a more central European approach in terms of payment and lease terms.