Treasury Holdings is predicting a recovery in the commercial office property market following a significant increase in activity in its property portfolio since the start of the year.
The company said it has secured deals on over 600,000 sq ft of real estate since January.
“In recent months we have experienced a growing demand from occupiers for our commercial property, which suggests a recovery in the commercial property market. The demand is focused on high quality, real estate, in strategic locations,” said John Bruder, Managing Director of Treasury Holdings.
“Commercial office vacancy rates in general are as reported by Jones Lang La Salle down to 15.8pc in Dublin City Centre and looking to the future if the current rate of take-up continues the Capital will run out of prime commercial space in larger buildings by 2013. This is a very real issue because the non availability of suitable office space could curtail new projects coming into the city and may mean Dublin loses out to competing locations for Foreign Direct Investment.”
“These statistics show a trend of increasing demand and suggest that we need to start focusing on recovery, and indeed on future development of the city. We should start that process now. We know that it takes a long time to deliver new buildings to the market. The planning process alone can take at least a year and construction usually takes two more years.”
“The pickup in occupier demand is not however confined to the office market. Our experience is that well located retail and residential property is also being taken up,” he said.
Since January Treasury Holdings has completed 148 transactions, comprising of 45 commercial and 103 residential which amounts to over 600,000 sq. ft of space.
Of the 148 transactions that were completed 133 of these transactions were lettings and collectively will produce a total annualized rent roll of over €7.5m. Of that, 55pc of this new rent roll is in respect of office properties with the balance split evenly between retail and residential. The current occupancy rate in the Treasury Holdings investment portfolio is 90%.