Dublin warehouse rents tumble 60-80%: Savills

Warehouse rents in Dublin have fallen by 60-80% as landlords vie for tenants, according to property adviser Savills.

Savills said the situation presents an opportunity for international retailers active in Ireland to ship larger deliveries and store stock in warehouses, cutting down on the number of annual deliveries.

With prime rents currently ranging from EUR 43 - 65 per m² and tertiary rents as low as EUR 10.76 per m2, the firm notes that retailers could cut annual delivery costs and store stock in warehouses until it is needed, following the example of Lidl and Primark.

According to Savills data there is currently 1.35 million m² of vacant warehouse space in Dublin. In 2012 the firm expects a total take up of 150,000 m² in Dublin for prime to tertiary warehouse space, similar to 2011 levels and anticipates that prime rents are unlikely to rise again until at least 2013 - 2014 as supply decreases. Secondary and tertiary rents will remain at the current level until 2015.