News Article

12/2/2007 - SUNDAY BUSINESS POST ARTICLE - WILLIAM J. HARVEY - PART 2
Cont/d....

Starter / Enterprise units (200 - 500 sq m) across the City performed very well during 2007. Successful schemes include NorthCity Business Park in Finglas, Port Tunnel Business Park in Clonshaugh, Kingswood, Greenogue and Baldonnell Business Parks on the Naas Road (N7) corridor. Prices achieved in North West Dublin typically ranged from €1,615 - €2,310 per sq m while units in South West Dublin typically ranged from €2,153 - €2,690 per sq m. Exceptionally strong prices of up to €3,325 per sq m were achieved for small units of 100 sq m. The tightening of credit facilities during the second half of the year slowed the number of sales of small units but did not negatively affect prices. With many new schemes planned for 2008, competition for purchasers may lead to more attractive deals being done, particularly in North West Dublin where it is unlikely that all developments with full planning permission for small units will proceed in the short term. This is not the case in South West Dublin where zoned land supply is limited and there are fewer competing developments.

A number of industrial estates situated on the periphery of the City Centre developed in the 1960’s and 1970’s (pre-container age) are now proving unsuitable for modern business needs. Coupled with the fact that landbanks suitable for residential and mixed use development within the City Council boundary are fast disappearing, some of these estates are ripe for regeneration. The occupiers of Malahide Road Industrial Park, Coolock have appointed a town planning consultant with a view to applying for a variation to the Dublin City Development Plan to facilitate regeneration. Close to the entrance of Dublin Industrial Estate, Glasnevin, planning permission was recently granted for the construction of a three storey office block comprising 45 units on a former industrial complex. Purchasing properties within selected areas might well lead to a major increase in value in the medium to long term. Elsewhere, Sandyford and Cookstown Industrial Estates have already been subject to Local Area Plans, paving the way for higher densities including residential and mixed use development.
The South Dublin County Council Naas Road Gateway Urban Design Masterplan envisages the creation of a new high quality mixed use built environment and the area which is being examined runs from Newlands Cross to the City Council boundary.
Industrial occupiers who are displaced from these inner locations will need to be re-accommodated in new industrial parks outside the M50 and with the supply of industrial zoned land in South West Dublin depleting rapidly, pressure is likely to mount on the Local Authority to re-zone more lands in the immediate area.

As a consequence of negative economic sentiment, enquiry levels have diminished. However, quality enquiries are at a sufficient level to absorb existing and new stock and provided that there is carefully considered production of new space based on accurate market research, the prospects for 2008 remain positive.