Its latest “Dublin Office Review and Outlook” shows there is currently 1.23 million sq ft (114,000 sq m) of office space under construction across the city.
However, around 785,000 sq ft, or 64pc, is already reserved, leaving limited availability for large corporate occupiers looking for high-quality space.
The property management firm said this shrinking supply is expected to push rents for the best remaining offices to between €65 and €70 per sq ft, with an expectation of hardening tenant incentives and lease flexibility, with the power now shifting towards landlords.
HWBC said tenants with large space requirements will increasingly look to pre-let buildings which have not been constructed in order to secure accommodation. It warned that developers are expected to be cautious about starting speculative office projects in 2026 unless a major pre-let is already in place.
According to the report, headline rents will need to rise further to between €75 and €80 per sq ft for the next phase of office development in Dublin to be financially viable.
The beneficiaries are likely to be the North Docks and city fringe locations
“The tightening of the supply of A-rated office buildings in Dublin is going to lead to increased competitive tension with occupiers and upward pressure on prime headline rents,” Paul Scannell, the director of agency and business space at HWBC, said.
“The beneficiaries are likely to be the North Docks and city fringe locations, which should see increased occupier interest and subsequently higher rents.
“We expect to see rents of €70 per sq ft being achieved in the core south city locations this year, reflecting increased competition for the best remaining floors.”
The outlook for leasing activity looked to be strong last year as the total take-up reached 2.6 million sq ft, 20pc higher than recorded in 2024, it said.
The largest deal of last year was a 416,000 sq ft letting to Workday at College Square in Dublin 2.
Other big deals involved occupiers such as Deloitte, EY and Vodafone.
HWBC said demand continued to be concentrated on high-quality offices in the city centre.
The report said this has been a trend in recent years as companies tighten return-to-office mandates and staff have a preference to be centrally located.
source