The IDA - Ireland's inward investment promotion agency - has warned that Dublin's economy could suffer at the hands of a commercial property shortage.
Speaking at the launch of the IDA's new annual report, chief executive Barry O'Leary said that an extra 400,000 sq ft of commercial space would be needed in Dublin to secure four large investments from multinational firms over the next few months. Furthermore, even though Mr O'Leary did not name any specifics, he suggested that an extra 200,000 sq ft of space would be needed for potential investment projects in the pipeline.
The talk highlighted the danger of Dublin failing to attract large corporate firms if the shortage of commercial space was not addressed. This is particularly an issue, considering that around 5,000 construction jobs are linked to IDA companies. Mr O'Leary concluded: "If design and construction doesn't start soon, it may become an issue."
Minister for jobs, trade and innovation Richard Bruton attended the event, and agreed to bring the issue to the cabinet.
This news follows a recent report by consultancy CBRE, which revealed that €603 million (£516.9 million) has been invested in Ireland's commercial property market in the first six months of 2013. Marie Hunt, executive director at CBRE Ireland, said: “There is strong demand for prime Irish real estate, particularly in Dublin, as has been evidenced by the volume of transactions and the pricing achieved for some trophy assets over the first six months of 2013."
There are now fears that with this potential interest from investors, there will not be enough supply to keep up with the demand, causing property values to soar and dimishing buyer interest.