Commercial property in Letterkenny is in growing demand, says Kiara Rainey from Sherry FitzGerald Rainey estate agents.
The surge in interest, particularly in property on Main Street, is a reflection of the market across Ireland with investment in commercial property nationally hitting almost €5 billion last year.
Kiara says: “Letterkenny is also seeing a growth in commercial activity with numerous new businesses opening on Letterkenny Main Street in recent months. These include Florence, Berry Lane, Amelia’s and the Former Vodafone shop which we have recently let on behalf of a client.
“We have also experienced an uplift in enquiries for commercial premises on Letterkenny Main Street and surrounding areas. There has been a growing number of sales and letting enquiries and we expect the growth in demand to continue in 2017.”
In their latest research, Cushman & Wakefield (Sherry FitzGerald’s commercial property partners) reported a 21% rise year-on-year in investment in the Irish commercial property market in 2016.
Total investment reached an impressive €4.46 billion and Cushman & Wakefield say that 2017 looks “very promising” for the Irish market at a regional level as well as in Dublin.
Marian Finnegan, Chief Economist, Cushman & Wakefield said 2016 “was a very resilient year for Irish commercial property”.
“Overall investment volumes were incredibly strong with notably €3 billion invested directly by US and European investors,” she said.
Prime Dublin rents rose by 4.6% during 2016, to stand at €619 per sq. m by year end.
Ms Finnegan said 2016 had been a hugely significant year for commercial property in the capital.
“Just over 31,000 sq. m of office accommodation was delivered in Dublin during the year, which was the first wave of office development in the city since 2011.
“Notably, there is an additional 373,000 sq. m of office space under construction in Dublin today, of which 230,000 sq. m is expected to be completed by end 2017.
“This is critically important to satisfy demand pressure and stabilize rental growth,” she said.
Cushman & Wakefield forecast rents will rise to €646 per sq. m during 2017 and believe the year ahead looks very promising, not just in Dublin, but for the Irish market as a whole.
They say total investment transactions are anticipated to be in the order of €3 billion, with a strong volume of re-trades from early entrants into the market.
Furthermore, the positive outlook for economic and employment growth bodes well for occupier demand in the office market, most notably in Dublin but also in the other regional centres.