COMMERCIAL PROPERTY: €1bn Q2 investment surge signals returning confidence in Irish commercial property
Industrial assets drove more than half of investment turnover as Dublin office availability fell to a three-year low, prime rents strengthened and regional markets showed an increasingly sharp divide between constrained Grade A supply and weaker overall occupier activity.
23 August 2026 | 📧 editor@ipropertyradio.com
Ireland’s commercial property investment market recorded its strongest first half since 2022 as more than €1 billion of assets traded during the second quarter, but the headline recovery masks a market still heavily dependent on a relatively small number of large transactions.
Cushman & Wakefield’s Q2 2026 MarketBeat reports show approximately €1.45 billion of Irish property investment was completed during the first six months of the year. Q2 alone accounted for just over €1 billion, across 25 assets, producing an average transaction size of €40.3 million.
Four transactions exceeded €50 million during the quarter, indicating a return of larger capital commitments after a prolonged period in which liquidity at the upper end of the market had been constrained.
However, investment was unusually concentrated. Industrial property accounted for 51% of Q2 turnover, residential for 19%, offices for 18%, retail for 6% and purpose-built student accommodation for 4%.
The dominant transaction was the €500 million acquisition of Horizon Logistics Park in Dublin by GIC and Valor Real Estate Partners. That single deal represented almost half of all Irish commercial property investment recorded during Q2 and almost the entire €513 million invested in industrial and logistics assets.
The transaction also pushed industrial investment to its highest quarterly level since Q4 2021.
The other major deals illustrate the broader return of institutional capital. One Molesworth Street in Dublin was acquired by MEAG for approximately €110 million, while residential transactions included the €84 million Project Lime portfolio and the €67 million Seafield Strand transaction.
Living-sector investment reached €233 million during Q2. Social housing portfolios featured prominently, including Project Lime, comprising 216 bedrooms, and Project Harp at approximately €42 million. Greystar also expanded its Irish student accommodation portfolio through the approximately €40 million acquisition of the 216-bed LIV Dublin scheme.
Dublin offices tighten as development pipeline contracts
The investment recovery is being accompanied by improving fundamentals in parts of the occupier market, particularly Dublin offices.
Approximately 53,000 sq m of Dublin office space was taken up during Q2, bringing first-half activity to around 90,000 sq m. That remains approximately 10% below the five-year H1 average, but represents an improvement on Q1.
The CBD continued to account for most activity, although larger suburban transactions suggest demand is becoming less concentrated.
The largest Q2 letting was approximately 6,000 sq m at Sandwith Court to Iconic Offices. The HSE took approximately 5,600 sq m at Building 1 in Cherrywood, while Block 9 at Richview Office Park accounted for approximately 3,300 sq m.
Asana took approximately 2,600 sq m at The Sidings in Grand Canal Dock and Bloomberg added approximately 2,400 sq m at One Charlemont Square.
More significant for investors and developers is what is happening to supply.
Overall Dublin office availability declined to 14.7% in Q2, its lowest level in three years. CBD availability fell to 14.1%.
At the same time, the construction pipeline has contracted to approximately 83,400 sq m for the 2026-2028 period, with almost 60% already pre-let.
Cushman & Wakefield recorded 95,700 sq m as reserved at the end of Q2.
The quality of available CBD space is also significant. The report’s BER breakdown shows 60% of available CBD accommodation carrying an A rating, with 11% rated B, 15% C and 14% comprising D-rated or lower, exempt or unknown stock.
The combination of falling availability, a substantially reduced development pipeline and continued demand for high-specification buildings is feeding directly into rental expectations.
Prime CBD rents stood at €735 per sq m in Q2. Cushman & Wakefield expects them to reach approximately €755 per sq m, equivalent to around €70 per sq ft, by the end of 2026.
For investors, the €110 million One Molesworth Street transaction is potentially significant beyond its individual value. Cushman & Wakefield describes the deal as an important benchmark for office pricing as institutional demand begins to re-emerge.
Regional offices tell a different story
The recovery is less uniform outside Dublin.
Office take-up across Cork, Galway and Limerick-Shannon totalled approximately 20,400 sq m during H1 2026, substantially below H1 2025. Cork generated almost two-thirds of the regional total.
Overall regional availability stood at 9.6% in Q2, or 9.3% excluding reserved accommodation. But the aggregate number conceals substantial differences between markets.
Cork is emerging as the tightest of the principal regional office markets.
Approximately 8,960 sq m was taken up there during Q2, bringing H1 activity to 13,400 sq m across 11 deals. That was well below the 33,500 sq m recorded in H1 2025, but 83% of this year’s activity was concentrated in the city centre.
Cork’s overall availability rate declined to 9.3% from 10.9% a year earlier. Within the city centre, however, just 12,700 sq m was available at the end of Q2, representing an availability rate of only 4.3%, compared with approximately 13% in the suburbs.
That tightening has pushed prime Cork office rents to €455 per sq m, up from €430 at the end of 2025.
Future supply is limited. Two Horgan’s Quay is the only office scheme under construction, providing approximately 12,000 sq m and scheduled for completion in Q2 2027. Around 25% has already been reserved.
Galway recorded approximately 5,300 sq m of H1 take-up. Its availability rate stood at 7.4%, only marginally above longer-term averages, while prime rents remained at €430 per sq m.
There are currently no office schemes under construction in Galway. The report notes that planning exists for further development at Bonham Quay and Crown Square but considers construction unlikely to begin until recently added supply is absorbed.
Limerick-Shannon was considerably quieter. Approximately 1,700 sq m was taken up during H1 across four notable transactions. Availability increased to 11.9%, or 10.2% excluding reserved space, its highest level since the end of 2022.
Prime rents nevertheless remained at €430 per sq m.
Regional office investment reached approximately €30.5 million during H1, with €35.8 million transacted over the latest 12 months. The largest transaction was Fine Grain’s approximately €16.3 million sale of Hawthorne House in Limerick to Arkea REIM.
Prime regional office yields stood at 6.5% in Cork, 6.75% in Galway and 7% in Limerick-Shannon.
Logistics demand remains Dublin-dominated
Industrial and logistics occupier activity strengthened between Q1 and Q2 but remains below last year’s level.
National take-up reached approximately 62,500 sq m during Q2, taking the H1 total to 114,500 sq m. That compares with approximately 170,000 sq m during H1 2025.
Dublin accounted for more than 90% of Q2 demand, with approximately 58,100 sq m transacted.
Among the largest transactions were 12,912 sq m taken by CEL Critical Power at Unit 7 Mountpark Grange Castle West, 8,234 sq m leased by Allegro at Greenogue Business Park and 5,323 sq m at 735 Northwest Logistics Park.
Regional activity was considerably weaker. Cork recorded 2,221 sq m of Q2 take-up, down 85% year-on-year, while Limerick-Shannon recorded 1,350 sq m, down 79%. Galway recorded just 735 sq m.
Supply is beginning to increase.
National industrial availability reached approximately 403,000 sq m during Q2, giving an availability rate of 4.4%, its highest since 2020 but still relatively low historically.
Dublin’s availability rate increased to 5.2%, falling to 3.8% when reserved accommodation is removed.
There were 343,219 sq m available in Dublin, compared with 42,316 sq m in Cork, 9,016 sq m in Limerick-Shannon and 8,622 sq m in Galway.
The national development pipeline remained at approximately 192,000 sq m. Dublin’s pipeline fell to approximately 82,400 sq m following completions, while Limerick-Shannon recorded an increase following commencement of approximately 19,000 sq m of speculative development at City Business Park, due for completion in 2027.
Prime industrial rents stood at €149 per sq m in Dublin, €140 in Cork and €124 in both Galway and Limerick-Shannon.
Cushman & Wakefield expects Dublin prime rents to increase to €153 per sq m by year-end, although the pace of rental growth is forecast to moderate.
Prime Dublin industrial rents were nevertheless 2.8% higher year-on-year in Q2. Prime yields stood at 4.9% in Dublin, 5.9% in Cork and 7% in both Galway and Limerick-Shannon.
Retail rents rise despite cautious consumers
Ireland’s retail property market presents another mixed picture.
Investment volumes remained relatively modest, but several notable transactions completed during Q2. The ILAC Shopping Centre was acquired by Hammerson for approximately €45 million, while the Maple Centre traded for €7.15 million and 44 Henry Street for €4.15 million. Corrib Oil acquired the Motorpoint Service Station in Waterford for approximately €3.2 million.
Further investment stock is progressing through the market, including Nutgrove Shopping Centre and Frascati Shopping Centre in Blackrock.
Occupier fundamentals remain comparatively resilient.
MSCI data cited by Cushman & Wakefield shows prime high street rental growth of 4.3%, retail warehouse rental growth of 6.7% and shopping centre rental growth of 4.3%.
Prime Zone A rents stood at €5,800 on Grafton Street and €3,100 on Henry Street. The equivalent figures were €2,045 on Patrick Street in Cork, €1,775 on Shop Street in Galway and €650 on O’Connell Street in Limerick.
The corresponding prime yields were 5% for Grafton Street, 6.25% for Henry Street, 6.75% in Cork, 7.5% in Galway and 9.5% in Limerick.
The retail occupier market is being supported by relatively robust household finances despite weaker sentiment.
Retail sales volumes increased by 0.4% in June and were 0.6% higher year-on-year. Hardware, Paints & Glass recorded annual volume growth of 6.8%, while Books, Newspapers & Stationery increased 3.8% and Pharmaceuticals, Medical & Cosmetic Articles rose 3.7%.
Furniture & Lighting sales volumes fell 6.8% annually and Fuel declined 3.6%.
Consumer sentiment recovered from a 40-month low of 53.3 in April to 62.2 in June, although it remained below its long-term average.
Household deposits reached €175 billion at the end of May, €9.6 billion or 5.8% higher than a year earlier, while the household saving rate stood at 12.5% in Q1.
Inflation remains the main pressure point. CPI inflation was 3.4% in June, while Housing, Water, Electricity, Gas & Other Fuels costs were 7.3% higher year-on-year and energy prices were approximately 10% higher.
A recovery increasingly defined by asset quality
Taken together, the Q2 data points to an Irish commercial property market moving further away from the broad repricing phase of recent years and towards a more selective recovery.
The €1 billion quarterly investment figure is significant, as is the return of transactions above €50 million. But with the €500 million Horizon Logistics Park transaction accounting for almost half of Q2 turnover, the market has not yet returned to uniformly deep liquidity.
The occupier evidence is similarly selective.
Dublin’s office availability is falling and its development pipeline has contracted sharply, creating conditions for rental growth in prime buildings. Cork’s 4.3% city-centre office availability demonstrates an even more acute shortage of suitable space, despite weaker overall regional take-up.
Industrial availability is moving in the opposite direction, rising nationally to 4.4%, but from a historically tight base. Meanwhile, more than 90% of Q2 industrial take-up was concentrated in Dublin.
Retail property is benefiting from rental growth and demand for established locations even as consumers contend with higher inflation and weaker confidence.
The common thread across the reports is therefore not a uniform recovery in Irish commercial property, but increasing differentiation.
Capital and occupier demand are concentrating on high-quality buildings, established locations and assets capable of meeting current operational and investment requirements. At the same time, constrained development pipelines in several office markets are reducing the supply of new Grade A accommodation.
For investors, that combination is beginning to restore pricing evidence and transaction liquidity. For occupiers, particularly those seeking prime Dublin or Cork office accommodation, the supply equation is becoming tighter.
The next phase of the market will depend not simply on whether investment volumes continue to recover, but on whether the broader transaction base expands beyond a handful of large deals and whether development activity responds before shortages of modern space become more pronounced.
