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Offices Market Outlook 2023

The two main talking points in the Dublin office market in 2022 were the adjustments in the global tech industry and continued remote / hybrid working options. Both trends resulted in an increase of grey space, where there is now 180,000 sqm available and more is due in the first half of 2023. Currently 32% of all supply accounts for 4.2 percentage points of the 13.2% vacancy rates across Dublin (or 5.1 percentage points of the 13% city centre vacancy rates). Lisney predicts there are three sectors to look out for in 2023:

  1. Highly profitable professional services firms
  2. Smaller scale indigenous tech
  3. The Irish State

Entering 2023, there are active requirements in the market and about 130,000 sqm of space reserved. It is likely demand and activity will be weaker during the first half of the year but will strengthen over the second half. Works will continue on office buildings under construction (280,000 sqm), however, there will be a little or no new starts in the near term as a result of the higher cost of both finance and building materials. Lisney predicts this will create future risks in the market with a lack of A rated buildings in three to five years’ time, which will cause issues for occupiers needing to meet ESG requirements

A full breakdown of the key sectors contained in the Lisney Outlook 2023 report can be accessed here:

By lisney
1st February 2023