Data for the first half of 2025 show that office market take-up across regional Ireland (including the Cork, Galway and Limerick-Shannon office markets ) rose to approximately 44,600 square metres (approximately 480,000 square feet ) compared to 18,200 square metres (approximately 195,900 square feet ) for the same period in 2024.
This strong first half of the year performance was helped by two large deals in Cork and Limerick-Shannon; in Cork Apple moved into its new campus at Hollyhill (approximately 21,600 square metres or 232,500 square feet ) while Bons Secours also moved into its new clinical facility at Towlerton (approximately 5,530 square metres or 59,500 square feet ). Although both of these deals occurred in suburban locations, generally large occupiers have increasingly been favouring city centre locations in recent quarters.
In terms of office market supply, vacancy has been less of an issue in regional Ireland compared to Dublin in recent years. At the end of the second quarter, the regional Ireland vacancy rate stood at only 9.3% – the lowest vacancy rate since Q3 2020. Once reserved space is stripped out, the net vacancy rate stands at only 8.7%.
The tightening supply demand picture across regional office markets is gradually pushing prime rents higher. Prime rents in Cork have increased to around €400 per square metre (€37 per square foot ) this year while recent deals at new office schemes at Bishop’s Quay in Limerick city centre and Bonham Quay in Galway have set new prime rent benchmarks of €430 per square metre (€40 per square foot ) in those locations. Prime yields meanwhile have remained stable in recent quarters at 6%, 6.25% and 6.5% for the Cork, Galway and Limerick-Shannon markets respectively.
Regional office investment volumes were weak in the first half of 2025 with transactions of only around €4m. However, they have been stronger when viewed on a 12-month horizon with a total of €42 million of transactions. Most of the transactional activity has been in the Galway and Limerick-Shannon markets with the largest transactions being the sales of Hamilton House II in the Plassey Innovation Campus for €14 million to Inter Gestion REIM in Q4 2024, and of Block 5 in Parkmore East Galway to Arkea REIM for €11 million.
Tom McCabe, head of research and insight, Ireland, Cushman & Wakefield, said: “The first half of 2025 has been a positive period for Ireland’s regional office markets. Take-up has been robust, helped by a really strong Cork performance while vacancy rates have again moved lower. With the medium-term office pipeline still weak, this should mean the supply demand picture for office markets in regional Ireland remains reasonably tight which supports the outlook for prime rents.”
Siobhan Young, divisional director Cushman & Wakefield Cork, said: “We are seeing growing demand for space from new entrants such as Motorola Solutions and Acuity Brands as well as the public sector such as the OPW and professional services firms like EY. Their demand has been focused on the city centre where availability is limited and the requirement for well serviced, fitted space is strong. This demand and occupier activity is driving higher rental levels for modern space, particularly in the city centre.”
Seán Coyne, divisional director Cushman & Wakefield Galway and Limerick-Shannon, added: “Activity in the Limerick-Shannon and Galway markets was somewhat mixed in the first half of 2025 with subdued activity in Galway balanced out by a busier period for Limerick-Shannon. Office availability has remained stable over the past few quarters at by and large low levels from a long-term standpoint. With the arrival of modern schemes such as Bishops Quay in Limerick and Bonham Quay in Galway, prime rents have in our view now hit required levels to incentivise future supply as this space is absorbed.”
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