The Galway office market is currently experiencing a period of transformation, driven as much by sustainability requirements as by traditional occupier demand. Average rental rates for good quality or secondary office space sit in the mid to high €20s per sq.?ft., with secondary A-rated stock typically quoting €28 to €32 per sq.?ft. By contrast, newly developed, high-specification city centre buildings are commanding approximately €40 per sq.?ft. for large floorplates, by Galway standards.
A key trend in the market is the refurbishment of older office stock to improve energy efficiency and BER ratings. As all publicly leased buildings must adhere to the EU’s revised Energy Performance of Buildings Directive, landlords are increasingly upgrading BER ratings to future-proof their office buildings and meet these standards. State services, public bodies, and established corporates are increasingly prioritising high-quality, energy-efficient accommodation, creating a clear policy-driven incentive for refurbishment. For example, Martin House in Dangan, recently purchased, is scheduled for BER upgrades in Q1/Q2 2026, targeting an improved A3 rating from its previous C2, with availability ranging from 5,700?sq?ft to 26,000?sq.?ft.
Similarly, the ground floor of Woodquay Court (3,951?sq.?ft. ) will undergo refurbishment in Q2 2026 to achieve an improved BER B1 rating, while the top two floors, which have already been upgraded, have recently been let to the Legal Aid Board. These upgrades demonstrate the market’s focus on sustainability, compliance, and the long-term viability of office assets.
Rising construction and fit-out costs have significantly influenced occupier behaviour. Costs rose sharply during the pandemic due to inflation and continued to increase during the Ukraine conflict. Although these costs have since stabilised, they have not fallen, and with the outbreak of the conflict in the Middle East, we may see a continuation of the upward trend through 2026. Consequently, many local and indigenous companies have shifted towards pre-fitted or partially fitted offices to minimise upfront expenditure, a trend expected to continue as fitted space remains increasingly attractive.
