News Article

12/2/2007 - SUNDAY BUSINESS POST ARTICLE - WILLIAM J. HARVEY - PART 1
2007 has been a good year for the industrial property market with significant take up of both new and second hand properties of all sizes on a Citywide basis with strong momentum carried over from an exceptional 2006.

Speculative development was mainly concentrated on starter type unit developments with schemes in all zoned industrial areas. The speculative development of medium to larger size units was not for the faint hearted and those who provided space in this category were well rewarded.

Developers with zoned land banks eagerly sought design and build contracts as opposed to embarking on speculative development projects and the majority of larger facilities completed or now reaching completion were pre-committed. The gradual rise in prices achieved for new medium to larger facilities during 2007 had a beneficial effect on the value of second hand property inside the M50 Motorway. Particularly strong prices were paid by companies who had immediate space requirements.

There was a continuous demand for modern high bay distribution facilities, particularly those located in well managed, secure business parks close to major arterial routes. Activity was largely concentrated in South West and North West Dublin where the majority of suitably zoned land is situated.

Notable transactions took place in North West Dublin at Dublin AirPort Logistics Park, Northern Cross Business Park, NorthCity Business Park, Stadium Business Park, Orion Business Campus and particularly Phase 3 Northwest Business Park which experienced the highest level of activity in the area. A facility at Northwest Business Park of 12,655 sq m was let to Wincanton and at Stadium Business Park, a facility of 7,271 sq m was let to Viking Direct. Quoting prices for new high bay facilities in excess of 1,500 sq m in North West Dublin now range from €1,776 per sq m in the Ballycoolin area to €2,161 per sq m at Dublin AirPort Logistics Park and annual quoting rents range from €107.65 - €123.80 per sq m.

No doubt, the highlight of the year in South West Dublin was Aerodrome Business Park where €90 million worth of transactions completed. The occupier line up will include leading companies such as McCormick Macnaughton, Heiton Buckley, Power Home Products and ECI JCB. A new purpose built facility of 4,290 sq m situated at the front of the Park was pre-let to Fannin Healthcare. Quoting prices and annual rents for new high bay facilities in excess of 1,500 sq m in South West Dublin are now €2,260 and €129.20 per sq m respectively.

Citywest Business Campus continued to be popular with occupiers where several transactions in excess of 3,000 sq m occurred. Other major sales/lettings were agreed at Park West Industrial Park, Ballymount, Fonthill Industrial Park, Kylemore Park West, Long Mile Road and the JFK industrial area. The only significant new development planned for 2008 in South West Dublin is Profile Park at Grangecastle.