The first six months of 2019 marked the lowest levels of leasing activity in the Limerick industrial market in over a decade, according to a report published by Cushman & Wakefield.
Seven deals were signed in the first half of this year, totalling 8,525 square metres of industrial space.
With industrial stock availability having increased by 36 percent when compared with the previous 12 months, market insights suggest that a number of requirements are not being met.
“While demand for prime industrial space remains strong, a lack of supply however has hampered growth in the sector,” said John Murray, a senior negotiator with Cushman & Wakefield.
Of the available stock, 56 percent are under 1,000 square metres in size, and just 12 percent are classed as ‘grade A’ units.
In addition to this, ‘To Let’ opportunities account for 75 percent of the industrial space currently available, limiting options for those who wish to be owner-occupiers.
Activity has largely been focused in the Shannon Free Zone in the 12 months to the end of June, with activity in this area accounting for 38 percent of industrial take up.
This period also saw the completion of demolition work in the Shannon Free Zone, making way for a redevelopment.
“There are a number of developments in planning and due to commence construction shortly in the Shannon Free Zone and the Annacotty Business Park,” Murray continued.
In the second quarter of this year, Limerick’s industrial vacancy rate stood at 10.5 percent, up from 7.7 percent in the same quarter last year.