The amount of office space leased in Dublin last year increased by two thirds on the total for 2023.

The market, which has been decimated by the pandemic and the push to work from home, has shown strong signs of recovery in 2024.

Take-up in Q4 of 2024 was nearly 548,000 sq ft (50,891 sq m) which brought the full-year take-up to over 2.25m sq ft (209,000 sq m)- a 66% increase on the full-year activity in 2023.

CBRE described the rebound as "a hugely positive outturn" which they said "demonstrates the renewed occupier confidence in the market, particularly for prime-located, sustainable stock."

They noted "2024 total take-up is just 12% below the long-term average for the market."

The largest leasing deal in the final quarter was at 1 Adelaide Road where ‘Big Four’ accounting firm Deloitte agreed a long-term lease for 14,400 sq m for their new Irish HQ.

The deal accounted for 28% of the quarterly take-up in Q4.

The other headline deal of the last quarter saw Wells Fargo taking 2,380 sq m at the newly completed Coopers Cross in the north Docklands.

CBRE noted the Dublin office vacancy rate remains high but said the number of available A-rated buildings in the capital was reducing.

"The news of these large lettings, along with the completion of leasing deals at notable new developments such as Wilton Park, The Shipping Office and Cadenza and the acquisition of long-vacant stock like the Seamark Building at Elm Park by the HSE earlier in the year, is shrinking the amount of available A-rated buildings in the city centre," the firm said in a statement.

Over the next 12 months, 62,000 sq m of Dublin office stock is due to reach practical completion, the lowest level since 2015 with nearly 60% of this already pre-let.

As a direct result the vacancy rate is expected to decline from its current level.

The availability of sustainable space in the core city centre will continue to shrink this year say CBRE and as a result decisions will need to be made in relation to non-sustainable buildings i.e. to sell, refurbish or repurpose.

Three of the 'Big 4' accountancy firms and the main technology groups in Dublin have completed 'generational moves' in the last few years, settling on new long-term HQ space in the city. 

As a result CBRE said the next wave of take-up will likely be in smaller deals and is expected to come from legal, smaller technology, and the public sector.

Colin Richardson, Head of Research at CBRE Ireland, said: “Occupier sentiment has improved significantly with bifurcation remaining a key theme in the market.

"Despite continued ‘rightsizing’ in the office sector, ‘generational moves’ by EY, Stripe, Deloitte and Workday (which should close in H1 2025) into new HQ space in Dublin have shifted sentiment drastically over the last nine months.

"Vacancy has now peaked and will start to decline this year, as office construction completions slow.”