Ireland's Cork industrial and logistics property market is witnessing strong activity, with established logistics firms expanding their operations amidst robust demand, according to a report by property advisor Savills Ireland.

The market has recorded 364,500 square feet of take-up so far this year, spread across 24 leased units. The market's resilience is highlighted by large deals agreed during the year. The largest transaction was the 67,700-square-foot letting of Unit 2 at Watergrasshill Business Park to Zeus Packaging, closely followed by Kuehne+Nagel's pre-letting of a 67,200-square-foot unit at Anchor Business Park in Little Island. Fastway and PFH Technology Group also secured significant spaces, contributing to market vibrancy.

Rental growth has been underpinned by tight supply dynamics, with few modern units available for immediate occupation. This scarcity has driven prime rental rates from €11.00 per square foot to €11.75 in Q3. The majority of take-up has focused on the East suburbs of Cork, driven by the area's infrastructure including access to major motorways and proximity to Cork Airport and the Port of Cork.

Director at Savills Ireland Niall Guerin stated: "The Cork industrial and logistics market is showing incredible resilience and growth. The strong demand, particularly in the East suburbs, is a testament to Cork's strategic position and robust infrastructure. We are seeing a significant shift towards longer lease terms, reflecting the market's confidence and the ongoing demand for high-quality warehouse space."

Looking ahead, the market is expected to remain undersupplied with a stable vacancy rate below 2.0 per cent. Rental growth in Cork has surpassed that in Dublin, with a 6.8 per cent increase year-to-date, signalling a positive outlook for the sector.

View the complete story on the Cork industrial and logistics property market report and rental growth analysis.