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Wall Street Journal: A Silver Lining for Irish Office Sector?

According to The Wall Street Journal: The U.K.’s surprise vote last month to leave the European Union will likely create a short-term slowdown in deal activity in Ireland’s office market, but analysts say that landlords and investors actually may benefit in the long term.

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As many as 75,000 jobs may leave London as a result of “occupational leakage” and as many as one third of those may end up in Dublin, according to Hemant Kotak, an analyst with Green Street Advisors. “The Dublin office market is actually a small market, so any leakage that you get from Central London would have a material impact on the market.”

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“The concern is that there is a fair bit of speculative development going on,” said Mr. Kotak. “If you develop too much, you oversupply the market and jeopardize rental growth because your vacancy rate could increase dramatically, especially if the demand you think is there doesn’t materialize.”

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To view the full article on The Wall Street Journal, click here.