Dublin is on course to face a shortage of prime, BER A-rated office space before the decade closes, according to HWBC’s Office Review & Outlook – H1 2025.
While demand remains robust, the city’s future supply pipeline is narrowing, raising concerns for occupiers seeking modern, sustainable offices.
Leasing activity in the first half of 2025 totalled 1.05 million sq ft, with an additional 1 million sq ft already reserved.
HWBC expects annual activity to surpass 2 million sq ft — a performance consistent with strong historic trends. Yet beneath this resilience lies a growing imbalance.
Of the 1.39 million sq ft currently under construction, around two-thirds is already pre-committed, leaving just 450,000 sq ft of fresh space available.
Beyond 2026, there are no speculative developments in the pipeline. This points to a tightening market from 2027 onwards, when many corporate leases are due to expire.
The city centre continues to dominate demand, accounting for more than 80% of transactions in H1.
Employers are prioritising central, sustainable offices that enable hybrid working and talent retention.
Workday’s landmark 416,000 sq ft pre-let at College Square was the standout deal, the largest leasing transaction in Europe since the pandemic.
Other major lettings included EY at Wilton Park, Vodafone at St Stephen’s Green, Apple at Park Place, and the HSE at Amiens Street.
New completions in H1 reached 350,000 sq ft, 90% of which was already pre-let or reserved.
Despite an overall vacancy rate of 16%, prime availability is becoming scarce, and HWBC expects headline rents of €70 per sq ft by 2026 for top-tier space.
Suburban hubs such as Sandyford, Citywest and Blanchardstown are also seeing momentum, with A-rated schemes like Termini and The Hive attracting strong occupier interest.
However, older, less energy-efficient stock continues to struggle, both in rents and occupancy.
Paul Scannell, Director at HWBC, warned: “The pace of new development has slowed significantly, and much of what’s currently under construction is already accounted for.
“Given the timescales involved in office development, there is a potential supply gap looming.”
Iain Sayer, Managing Director, added: “The challenge will be ensuring Dublin can continue to meet the expectations of both domestic and international occupiers. That will take planning, investment, and clear decisions now.”
