Dublin’s office market is being led by the high demand that professionals have for flexible office spaces.
According to a report published by the Irish Independent, CBRE data reveals the flexible office space sector is outpacing the performance of traditional office spaces. Property consultants cite that Dublin’s flex market has achieved strong take-up rates, competitive rents, and lower vacancy levels compared to the overall office market. Additionally, the professional services and technology sectors are said to be driving this high demand — accounting for 70% of the uptake in 2023.
Companies in Dublin seeking up to 25 desks accounted for 82% of the demand, suggesting a trend towards smaller, flexible office solutions favored by small businesses and individual professionals. This shift, as reported by the Irish Independent, is attributed to the rising costs of fit-outs and financing, leading to a preference over long-term commitments and the conventional 10 to 20-year leases of traditional office spaces.
Notably, WeWork, one of the largest providers in the Dublin market, is responding to this trend by opening a new location at Central Plaza in Dame Street. The company, which filed for Chapter 11 Bankruptcy in the U.S. last year, is still committed to leasing approximately 73,000 sq. ft. of flexible space set to launch in May.
Overall, rental prices for flexible workspaces are also reported to have returned to the levels seen before the pandemic. However, monthly costs still vary due to the competitive market, with enterprise and headquarter floor spaces available at €120 to €150 per desk. In highly sought-after city center locations, prices can reach up to €900 per month. Additionally, the cost for individual “hot desks,” where workspaces are available for use by members, ranges from €400 to €500 per month.
Dublin’s office market and embrace of flexible office arrangements reflect a broader global trend towards short-term office commitment. As markets evolve to cater to the demands of hybrid and remote workers, other major markets around the world could see similar transformations.
