Lorcan Allen’s Stock Take: Commercial property values hit by remote working and interest rate hikes

Demand for office space has weakened sharply as firms reassess needs, with thousands of employees still working remotely

Demand for new office space has weakened sharply as businesses face economic uncertainty. Picture: Getty

A slow reckoning is taking place in the Irish commercial property market right now. And for those looking closely, the signs are all there.

The sharp rise in interest rates over the last year coupled with weak demand from businesses, particularly in the tech sector, means commercial property values are beginning to correct. In the last six months, some of the largest commercial property funds in Ireland have collectively booked almost €290 million in write-downs ...