Investment in commercial property continued on a high note through Q1 2019, according to Cushman & Wakefield.

There were 29 deals recorded by the company, for a total value of €508m, the single largest transaction being the off-market sale of Charlemont Exchange, D2, which was acquired for €145m by the South Korean investment fund, Vesta Management. 

This was the only property sold in the quarter in the €100m+ price bracket, as against three transactions in this price bracket in Q1 2018.

Managing director Aidan Gavin said: “All indications suggest that 2019 will be another vibrant year for the commercial property market, with current forecasts suggesting approximately €2.5bn of capital will be invested during the year. This could rise to over €4bn if the sale of Green REIT were to complete as an investment transaction. 

“This will be underpinned by the continued strength of demand in the office sector, with approximately 250,000 sq m of space expected to be occupied in Dublin over the course of the year. This is placing further upward pressure on prime rents, which we anticipate will increase further to €676 per square metre by year end.”

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The office market accounted for 54% of total value of Q1 commercial property deals, with a value of c. €275m.

Cushman & Wakefield counted 58,650 sq m of office space occupied through Q1. The property advisor says 470,000 sq m of space was under construction at the end of March, with three quarters of this space located within the CBD.  Of this, half is  pre-let and 13% is reserved.

C&W estimates that 80% of new Dublin office space due for delivery in 2019 is pre-committed. Examples include the Central Bank’s pre-let of 18,350 sq m at Dublin Landings, and 2,300 sq m pre-committed by Qualtrics at Chatham & King Street.