Dublin's industrial and logistics sector has seen notable growth, with 112,845 square meters of space completed recently and a 3% increase in the second quarter to 57,304 square meters. The vacancy rate is a low 2.4%, reflecting strong demand, as evidenced by a 71% year-on-year take-up growth and a robust pipeline, including 2 million square feet of development at Swords.
Industrial and Logistics Sector Sees Significant Growth in Dublin
The industrial and logistics sector in Dublin has experienced substantial growth, with a total of 112,845 square meters of space completed recently. This expansion is indicative of a broader trend in the region, reflecting a robust demand for logistics facilities and industrial units.
Significant Developments in the Second Quarter
The second quarter saw the completion of 57,304 square meters of logistics space, marking a 3% increase from the first quarter. This period recorded the highest take-up since the fourth quarter of 2023, highlighting the escalating demand for logistics solutions in Dublin. Notably, several third-party logistics groups have been actively engaging in new contracts, further underscoring the vitality of the sector.
Rising Demand and New Developments
There has been a noticeable rise in demand for multi-let industrial units in Dublin, a trend that aligns with the broader market behavior observed in the United Kingdom. In response, Iput has announced plans to deliver 1.5 million square feet of new industrial space. This initiative is part of a larger, healthy pipeline of new completions, which includes a 1.7 million square feet of constructed logistics space and a substantial 2 million square feet development pipeline at Swords.
Key Projects and Market Dynamics
The Nexus Logistics Park is one of the significant projects under development, featuring 2.5 million square feet of space spread across 17 buildings. Furthermore, the region boasts 300 acres of zoned industrial land, providing ample opportunities for future growth and development. Year-on-year, the take-up growth has surged by 71%, with 492,000 square feet taken across 17 deals, contributing to a year-to-date take-up of 1.6 million square feet.
Occupancy and Market Outlook
The current vacancy rate in Dublin's industrial and logistics sector stands at a low 2.4%, indicative of the strong occupier demand in the market. With a focus on sectors such as aerospace, defense, and industrial, companies like GXO, which spun off from XPO Logistics in August 2021, are expanding their operations across North America, the U.K., and Europe. GXO now ranks as the third-largest logistics provider in North America, reflecting the dynamic nature of the logistics industry.
The industrial and logistics sector in Dublin continues to thrive, driven by robust demand and significant development activities. With a healthy pipeline of new projects and a low vacancy rate, the market is poised for continued growth and expansion. As Dublin mirrors trends seen in the U.K. market, it remains a key player in the logistics and industrial sectors.