Take-up in the Dublin office market should remain in the 2 to 2.5m sq ft range in 2025, according to the latest Office Review and Outlook report from HWBC.

With over 1.2m sq ft of office space already reserved, including high-profile developments such as Marlet’s College Square, the property agency forecasts a similar strong outcome to that recorded in 2024.

The review shows that after a slow start, the Dublin office market staged a recovery in 2024 with annual take-up reaching 2.15m sq ft, a 63% increase on 2023 figures and closer to the long-term average for the market of 2.5m sq ft.

A similar or better take-up is predicted this year with HWBC expecting the corporate sector to continue targeting sustainable office space in the Central Business District (CBD), where 75% of last year’s market take-up was concentrated.

Last year marked a significant recovery for Dublin’s office market, driven by pent-up demand from financial, professional services, and technology sectors. Seven transactions exceeded 50k sq ft with four of these over 100k sq ft including Stripe’s 156k sq ft and EY’s 133k sq ft at Wilton Park. New completions also reached 1.99m sq ft, with 60% pre-committed on delivery, underscoring strong occupier confidence in return office trends.

HWBC predicts corporate demand for BER A-rated space in Dublin 2/4 will drive increased competition among would-be occupiers and reduce supply over the next 12 months. Currently, there is approximately 1.55m sq ft of A-rated standing stock over 20,000 sq ft available in Dublin 2/4, equating to less than two years of supply at current demand levels. With no speculative space under construction for completion beyond 2027, the market faces an impending shortage of new high-quality stock, HWBC says.

There is approximately 1.57m sq ft of new office space under construction in Dublin with around 79% of this reserved for companies such as KPMG, Citi, Deloitte and Google. HWBC estimates 675k sq ft is due to be completed this year including the Treasury Annex for Google (274k sq ft), 2 Grand Canal Quay (145k sq ft) and The Frame on Baggot Street (48k sq ft).

Sustainability continues to influence corporate leasing decisions, HWBC says, with a “green premium” driving demand for BER A-rated space and environmentally certified spaces. Notably, the report finds that multinational firms are increasingly prioritising city locations to entice employees back to the office. This trend saw over 1m sq ft of take-up in Dublin 2/4 last year, with all occupiers of scale choosing A-rated space.

The suburban market, which accounted for 25% of take-up in 2024, is expected to see steady activity in 2025, HWBC predicts, as price-sensitive occupiers broaden their searches beyond the city centre. Sandyford, Cherrywood, and Dublin Airport remain key suburban hubs.

While the outlook is optimistic, the agency notes potential headwinds from the international market, particularly concerning US corporates navigating the policy environment under the second President Donald Trump administration. It says this could lead to delays in decision-making for some occupiers, though strong fundamentals in the Dublin market are expected to offset these uncertainties.