Property Crash Hits Dublin as Big Tech Cuts - commercial real estate

Office landlords, battered by a global crash, have been clinging to the hope that new buildings with strong green credentials will still demand top rents and prices. Dublin is emerging as a cautionary tale that such optimism may not hold up.

In the city’s North Docks district, new buildings are falling into bankruptcy protection after US tech firms scaled back the amount of new space they leased and borrowing costs rose.

Values are already down 40% to 50% from their peak, according to investors and brokers, who expect price declines and strains in financing to continue in coming months.

The slump is playing out in an area best known a decade ago for the unfinished shell of a new headquarters for Anglo Irish Bank after its demise helped tank the economy during the financial crisis.

It’s part of a wider global downturn that’s hit commercial real estate valuations from New York to London and Hong Kong, with implications for developers, investors, banks and other lenders.

Bloomberg 9 April 2024


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