Patricia Staunton, Head of Regions, Agency and Sean Coyne, Divisional Director, Regions, Agency sat down to discuss the current regional office market trends in Ireland and their impacts on landlord and occupier clients.
The regional office market shows positive signs with a stable outlook and ongoing development projects. Effective management of new supply and continuous investment in existing buildings are key to maintaining market health.
Market Dynamics
The office market in the regions is cyclical, with performance alternating between cities. Currently, Galway and Dublin are quieter, while Limerick and Cork are busier. Common requirements for tenants across all regions include access to talent from universities, housing, and high-quality office buildings with modern facilities and ESG considerations. Landlords face viability challenges in regional development but must focus on providing quality buildings and necessary amenities to attract tenants.
Building Stock and Development
A considerable portion of the building stock in Galway and Limerick is older than 30 years, indicating a need for investment in upgrades. While repurposing older buildings is common, it is not a complete solution. Landlords are advised to upgrade buildings while tenants are still in place. Recent completions like Bonham Quay in Galway and Opera Square in Limerick are crucial for attracting new tenants. Phased delivery of new products is essential to avoid market saturation.
Outlook
The regional market is expected to remain steady with low vacancy rates and consistent take-up levels. Industry clustering (e.g., medtech in Galway, pharma in Limerick, and aviation in Shannon) is evident and beneficial for market stability. Speculative development continues to play a role, with new high-quality products attracting tenants upon completion.
Watch the full discussion today.
