The latter indicates that there is scope for more growth towards the year-end. Despite the increased market preference to purchase rather than lease throughout the Dublin region, the rental market has seen some signs of increased activity with properties taking less time to rent. Tenants continue to seek flexible terms with short leases and rent free periods now being considered standard. Prime new units if up to 500 sq. m. are achieving rents of between €105 per sq. m. and €130 per sq. m. per annum. Units in excess of 500 sq. m. are realising about €100 per sq. m. and €120 per sq. m.. According to Lisney prime industrial rents increased by 1.5% for the six months to July 2005 and should continue to grow for the remainder of the year.
Prime retail rents have increased by 3.85% since the beginning of 2005.
This represents an increase of 20.73% over the last year. The prime retail sector has been the only area to see growth over the last three years with a growth rate of 86.53%. Although the pace of rental growth on Grafton Street is slowing, there is still a significant gap between rents being achieved on the open market and rents being agreed with tenants at rent review.
Recent new lettings on the street indicate rents in excess of Zone A €8,600 per sq. m.,while rent review settlements are approaching Zone A levels of €7,500 per sq. m. with corner units achieving more.For a number of years Irish investors have been making waves in the UK, successfully outbidding local investors. This started at auctions with small lot sizes and, over the last 5 years, has moved up the food chain.
There were a number of reasons for this including a fall in the amount of money flowing in to the open ended funds. German law requires that a proportion of funds be kept in cash. We don’t frequently consider the property business area existing as it does today in many years passed by however actually house or land adelaide conveyancing fees is a thing of both the past and the present. In 2004, the profile of the deals being done by Irish investors rose to the very top of the market.
They were attracted by the long lease terms, full repairing and insuring tenant obligations, upward only rent reviews and relatively low transaction costs. In 2004, the German appetite of German funds cooled somewhat.