2 weeks Ago
The president of US property investment group Kennedy Wilson, Matt Windisch, says there is a “flight to quality” in Dublin’s office space, even as the overall occupancy rate in the capital remains about 18pc. The comments from Mr Windisch as Kennedy Wilson released third-quarter results this week echoes figures last month from estate agent CBRE. It said that there was a rebound in office leasing activity in the Dublin market during the first nine months of the year.
Occupiers are increasingly hunting for sustainable, high-spec offices that include advanced energy-saving features. Kennedy Wilson owns or co-owns developments in Dublin such as Coopers Cross, a six-acre mixed use development in the city centre. It also has interests in new offices on Kildare Street, as well as Capital Dock and Hanover Quay.
Kennedy Wilson also owns or co-owns a total of 3,282 apartments in the capital, almost all of which are rented. They command an average monthly rent of $2,773 (€2,581). That’s the highest of any so-called multi-family units that are owned by Kennedy Wilson across its markets and including in areas such as California and the US northwest, including Seattle.
“In Dublin, our nine stabilised [office] properties are almost full, with less than 5pc availability at quarter end,” said Mr Windisch in relation to the third quarter. “We have seen additional tenant demand in Q4 as our high-quality, sustainable properties continue to benefit from a flight to quality,” he said. Kennedy Wilson chief financial officer Justin Enbody also noted that there is a strong appetite for debt related to its properties, as the group continues a refinancing programme.
He said that 25pc of the group’s debt maturities next year relate to its multifamily portfolio, primarily secured against assets in Dublin, “where debt capital availability remains strong”. “We are already underway in addressing this maturity, and have received over 25 proposals, which speaks to the quality of this portfolio,” he added. CBRE said last month that office take-up in the first three-quarters of 2024 is higher than the whole of last year.
A further 85,200sqm of Dublin office stock is “reserved”, and the agent is forecasting that total take-up for 2024 will exceed 185,000sqm. The largest deal of the third quarter saw Big Four accounting firm EY agree a lease assignment from LinkedIn at IPUT’s Two and Three Wilton Park in Dublin 2..
