Ireland Commercial Property Market: Dublin Signals Stronger Demand as Supply Tightens

Commercial property market update | Ireland | 31 October–7 November 2026

Ireland’s commercial property market entered November with a noticeably firmer tone. The latest week brought fresh evidence of institutional confidence in prime Dublin offices, continued pressure on available Grade A space, strong industrial and logistics fundamentals, and a more selective market for landlords and investors.

Our review of credible Irish and international property reporting, professional research and market announcements identifies four central themes: prime offices are outperforming secondary stock; logistics supply remains exceptionally constrained; occupiers are becoming more deliberate about space quality and flexibility; and investors are returning, but concentrating on income security, location and sustainability.

The week in brief

• 2 November: IPUT and the Ireland Strategic Investment Fund announced a €100 million equity commitment to support the first phase of IPUT’s €500 million prime office development programme, including 29 Earlsfort Terrace.
• 3 November: The Society of Chartered Surveyors Ireland hosted a commercial property discussion covering offices, retail, industrial and logistics, investment, finance and the challenges facing the market.
• 4 November: Bannon reported 533,063 sq ft of Dublin office take-up across 56 transactions in Q3, with 73% of activity concentrated in prime city-centre locations and Grade A accommodation representing 84% of total activity.
• 6 November: Workday’s decision to offer approximately 140,000 sq ft of its College Square headquarters back to the market illustrated the continuing need for occupier flexibility, even as headline Dublin demand improves.

1. Dublin offices: recovery, but not a uniform one

The strongest message from this week’s reporting is that Dublin’s office market is recovering unevenly. The best buildings in the best locations are attracting occupiers, while older or less competitive stock continues to face a more demanding leasing environment.

Bannon’s Office Pulse, published on 4 November, recorded 533,063 sq ft of take-up across 56 transactions during Q3 2026. Prime city-centre locations accounted for 73% of activity, while Grade A space represented 84%. Bannon also reported that Grade A transactions increased by 30% quarter-on-quarter.

Those figures point to a clear flight to quality. Tenants are not simply seeking space; they are seeking buildings that support recruitment, collaboration, energy performance, employee experience and brand positioning. In practical terms, this favours well-located, highly amenitised and energy-efficient buildings with strong transport connections.

Knight Frank’s October research reported 544,000 sq ft of Q3 lettings, bringing year-to-date take-up to almost 1.5 million sq ft. The overall vacancy rate declined to 12.7%, prime rents remained at €65–€67.50 per sq ft, and the firm expects prime rents to reach €70 per sq ft during 2026, with pre-let rents potentially reaching €75 per sq ft.

Knight Frank also reported that 72% of new space delivered in 2026 or due for completion by 2027 is already pre-let. Including reserved space, the proportion rises to 78%. This is important for developers and landlords: a market can have an apparently high overall vacancy rate while simultaneously experiencing a shortage of modern, immediately usable space.

Workday highlights the importance of flexibility

On 6 November, Bisnow reported that Workday is marketing approximately 140,000 sq ft of its new College Square headquarters for sublease. The space represents about one-third of the 416,000 sq ft commitment announced in 2025 and is being offered on flexible terms.

This should not be read as evidence that Dublin office demand is weakening across the board. Rather, it reinforces the importance of lease flexibility, accurate occupational forecasting and adaptable floorplates. Even major international occupiers may adjust their space requirements as working patterns, headcount plans and operating models change.

For owners, the lesson is straightforward: a strong building still needs a credible leasing strategy. Subdivision options, fitted accommodation, shorter or more flexible terms, attractive amenities and realistic pricing may all improve liquidity.

2. Institutional confidence returns to prime offices

The most significant investment announcement of the week came from IPUT and ISIF. In its 2 November announcement, IPUT said ISIF would invest €100 million in new equity to fund the development of 29 Earlsfort Terrace as part of a €500 million prime office development pipeline.

The wider programme includes the redevelopment of The Charlotte Building on Harcourt Street. Together, the two projects have planning permission for approximately 350,000 sq ft. IPUT said it has raised more than €400 million in new equity during 2026 and expects construction at 29 Earlsfort Terrace to commence before the end of the year.

This is a meaningful signal for the market. It indicates that long-term capital continues to support prime Dublin offices where the product is modern, sustainable, well located and capable of attracting high-quality occupiers. It also supports the argument that the city’s central market is structurally undersupplied at the top end.

However, investors should avoid applying prime-market evidence indiscriminately. The investment case for a newly refurbished city-centre building with strong covenants is very different from the case for a secondary suburban office with short leases, high capital expenditure requirements or uncertain reletting prospects.

3. Industrial and logistics remain the tightest occupational market

Although the most recent major logistics data was published before this week, it remains highly relevant to the current investment conversation. Bisnow’s summary of Savills research reported 824,000 sq ft of Dublin industrial and logistics take-up across 17 transactions in Q3 2026, the strongest quarter in almost three years.

Take-up for the first nine months reached 1.9 million sq ft, putting the market on course to exceed the 2.4 million sq ft recorded in 2025. The south-west accounted for 84% of Q3 take-up and its vacancy rate fell to just 1.5%, while Dublin’s overall logistics vacancy rate declined to 2.6%.

Prime rents increased by €0.25 per sq ft during the quarter to €14.75 per sq ft, marking the sixth consecutive quarter of growth. New supply is coming through, but the delivery pipeline remains below the five-year average and larger units in the most sought-after locations remain difficult to secure.

For investors, modern logistics buildings with strong access to the M50, Dublin Airport, Dublin Port and the wider motorway network remain among the most defensible commercial property assets. For occupiers, the challenge is availability. For landlords, the opportunity lies in maintaining specification, energy performance and operational flexibility rather than relying only on market-wide rental growth.

4. Investment market: stronger volumes, selective capital

The wider investment market has improved materially during 2026. Colliers reported €673 million of Irish commercial property investment across 22 transactions in Q3, bringing year-to-date turnover to €2.16 billion, 34% ahead of the same period in 2025.

Living attracted €248 million, offices €185 million and industrial and logistics €164 million. International investors accounted for 87% of Q3 spending, with North American and mainland European buyers particularly active. Colliers expects full-year investment turnover to exceed €3 billion, subject to the completion of several large transactions.

The data suggests that liquidity is returning, but it is not returning evenly. Buyers remain focused on assets with secure income, strong tenant demand, credible rental growth prospects, sustainability credentials and a clear route to exit.

5. What the latest evidence means for Dublin landlords and sellers

For landlords

• Review lease events early, particularly breaks, expiries, rent reviews and refurbishment obligations.
• Benchmark the property against competing Grade A and fitted accommodation, not only against headline market averages.
• Assess energy performance, accessibility, amenities, cycling facilities, transport links and tenant experience.
• Consider whether flexible subdivision or fitted space could broaden the potential occupier pool.
• Protect income quality through proactive tenant engagement and properly documented building management.

For sellers

• Prepare a detailed information pack before launching the property, including leases, rent schedules, service-charge budgets, BER information, planning documentation and capital expenditure history.
• Position the asset around its specific strengths: covenant, lease length, location, redevelopment potential, ESG credentials or rental reversion.
• Use realistic pricing. The market is active, but buyers remain highly analytical and will discount uncertainty.
• Target the correct buyer universe, including domestic private investors, institutions, funds, owner-occupiers and international capital.

For investors

• Prime offices and modern logistics remain compelling, but entry pricing must reflect interest rates, financing costs and future capital expenditure.
• Secondary stock may offer value where there is a credible repositioning, refurbishment, change-of-use or management plan.
• Income security remains as important as headline yield. Tenant quality, lease structure and reletting risk deserve close analysis.
• Assets with strong transport connectivity and scarce planning or development potential may command a premium because replacement supply is difficult to deliver.

6. Our view from Dublin

From an agency perspective, the current market rewards preparation and precision. The days when a broad market recovery lifted every commercial asset are not here. Instead, Dublin is developing a two-speed market: prime, sustainable and well-located assets are attracting stronger demand, while secondary properties require active asset management and a more sophisticated leasing or repositioning strategy.

The opportunity for owners is that properly presented assets can still achieve excellent results. The opportunity for investors is that the market is offering more choice than it did during the most constrained periods, although the best assets are attracting competition. The risk is assuming that a favourable sector headline will automatically translate into a favourable valuation for every property.

Valuation, tenant analysis, lease review, presentation, marketing reach and negotiation remain decisive. That is particularly true for privately owned commercial property, mixed-use assets, small investment blocks, offices, retail premises and industrial units where local knowledge can materially affect the outcome.

How Casey Kennedy Estate Agents can help

Casey Kennedy Estate Agents is a Dublin-based property practice with roots in Stillorgan dating back to 1985. Our team provides commercial sales, lettings and management, block and OMC management, rent reviews, commercial and residential valuations, and Bluebook TEGoVA valuations.

We manage more than €2 billion in assets and operate across Dublin and the commuter belt, with agents covering the city centre, Northside and Southside. Our flagship office is at 149 Leeson Street Upper, Dublin 4.

For owners considering a sale, we provide advice on pricing, market positioning, presentation, marketing and negotiation. For landlords and investors, we help with leasing strategy, tenant management, rent reviews, valuations and ongoing asset performance.

Thinking of selling, letting, valuing or acquiring a commercial property? Speak with our experienced team through Casey Kennedy contact.

Editorial note: This article is an informed market commentary based on publicly available reports and news identified during the period 31 October–7 November 2026. Market forecasts are opinions attributed to the named research providers and are not guarantees of future performance. Any investment, valuation or letting decision should be supported by property-specific professional advice.