Dublin’s office market is experiencing a significant resurgence, with a strong rebound in Q2 2024, according to the latest Office Review and Outlook report from HWBC.

The demand for office space in the city has picked up, with 900,000 sq ft of deals signed in the second quarter, bringing the total take-up for the first half of the year to 1.1 million sq ft.

This strong performance in Q2 builds on a gradually improving market, following a weaker Q1 that appears to have marked the low point of the cycle. In stark contrast to 2023, which saw only one deal over 50,000 sq ft, 2024 has already recorded five such transactions, with more expected in the latter half of the year.

The first half of 2024 saw activity across a diverse range of sectors driving take-up levels 62% higher than in the same period last year. The average deal size has also increased, now standing at around 15,000 sq ft.

Notable deals include BNY’s 85,000 sq ft lease at the newly completed Shipping Office in the South Docks and Mark Anthony Brands’ expansion to 44,000 sq ft at One Charlemont Square.

The pipeline for the second half of 2024 appears strong, with several large office requirements expected to contract. Workday is actively considering locations for a 400,000 sq ft campus to consolidate and expand its operations in Dublin. Other major requirements from companies such as Deloitte, EY, and ESBI are expected to add around 700,000 sq ft in potential lettings, which could see the total take-up for 2024 exceed 2 million sq ft.

In addition to this surge in demand, the secondary ‘grey space’ market has been particularly active, with major transactions helping to reduce available space. Notably, Stripe and EY have chosen IPUT’s new Wilton Park development, and LinkedIn’s surplus space of 272,000 sq ft, initially offered by sub-lease, will now be reabsorbed by the market. Moreover, the market is adapting to evolving demands, with surplus stock being repurposed for alternative uses. A significant example is the HSE’s acquisition of the 182,000 sq ft  Seamark Buildings in Elm Park, originally intended as high-quality office space but now repurposed for the health sector.

Paul Scannell, Director, Agency & Business Space, HWBC, said: “This strong Q2 performance marks a pivotal moment for the Dublin office market, with renewed confidence from corporate occupiers clearly evident. The number of large transactions in the first half of 2024 is particularly encouraging and suggests that the market is well on track to surpass 2 million sq ft  take-up for the year. The demand across sectors—from health and government to finance and technology—demonstrates the resilience and appeal of Dublin as a prime office location.

On the supply side, 2024 is set to be the peak year for speculative office deliveries in Dublin, with a total of 2 million sq ft of new completions anticipated by year-end. While 41% of this space is already reserved, there is still a considerable speculative space available, which is expected to be steadily absorbed by active demand. Major upcoming reserved completions include Bolands Bakery for Google, the new KPMG campus at Harcourt Square, and Citi’s new headquarters at Waterfront South Central.

However, as we move forward, there is an expectation of a tightening in supply for prime office space post-2026, likely putting upward pressure on rent levels. For occupiers, the next six months may represent the optimal window to secure space on favourable terms before the market fully corrects. Investors are already recognising this potential, and HWBC anticipate significant capital inflows into the Dublin office market, particularly for prime CBD locations.

“The secondary ‘grey space’ market has also been active, with Stripe, EY and Linkedin collectively reducing available space by hundreds of thousands of sq ft. The dynamic repurposing of surplus stock for alternative purposes, such as we have seen with the Seamark buildings, is also encouraging,” added Paul.

“Looking ahead, the strong pipeline of active demand, particularly from major players such as Workday, Deloitte, EY, and ESBI, indicates that the momentum will continue into the second half of the year. While the suburban markets remain challenging due to subdued tech sector demand, the overall outlook for the Dublin office market is increasingly positive.

“Looking ahead, we anticipate that the market will tighten post-2026. This means that the window of opportunity for occupiers to secure prime office space at favourable terms is gradually closing. Investors are already sensing this shift and are beginning to position themselves accordingly.”

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