Property Year In Review

CBRE: Office sector yet to feel the love as retail, hospitality and industrial thrive

Rise of flexible working patterns has led to a dampening in demand for office space, particularly in non-core locations or older buildings

The overall Dublin office vacancy rate has now risen to close to 15 per cent, its highest point since 2014. Picture: Dror Baldinger, AIA

The impact of higher interest rates on property valuations, combined with softening demand in some sectors such as offices, has brought commercial real estate sharply into focus in 2023.

Like the rest of Europe, commercial asset pricing in Ireland has adjusted over the last 12 months.

At this point, Dublin offices, particularly older or non-core located buildings, have seen the sharpest valuation declines.

Conversely, we continue to see strong occupational and investor demand for industrial ...