Property professionals expect industrials to outperform other sectors
Values and rents for industrial and logistics units will continue to climb this year, while the outlook for offices and retail has also improved.
These are among the forecasts in the Commercial Property Review and Outlook 2022, published by the Society of Chartered Surveyors Ireland. Max Reilly, chair of the SCSI Commercial Agency Committee, said the survey of its commercial surveyor members indicates an overall upturn in sentiment.
Prime industrial rents are expected to rise by 6pc on average in 2022 and rents for secondary industrial are expected to rise by 3pc. Consequently capital values are expected to increase by 5pc and 3pc for prime industrial and secondary industrial respectively.
Steady occupier demand for prime offices will push their rents up by 1pc and investor demand could boost their values by 2pc. However secondary office rents are expected to fall by 1pc while their capital values will stabilise.
Retail rents in prime locations are expected to dip by 1pc. The SCSI/IPD index showed rents in Henry Street fell 14pc and those in Grafton St fell 7.1pc last year.
Secondary retail rents may fall by 4pc this year.
Projections for the retail market improved over the course of 2021 and consequently the capital value of prime retail is expected to stabilise – but the value of secondary retail is still expected to fall by 3pc.
Last year capital values on Grafton St fell by over a third, while Henry St values fell by 43pc.