An Bord Pleanála have granted planning permission for the first phase of a €200 million mixed-use development.
Galway’s property market saw increased commercial and residential development along with a surge in office activity in the first quarter resulting in positive office and industrial rents.
These are among the findings in the latest Cushman & Wakefield reports on Galway’s office and industrial markets.
Cushman says prime office rents in Galway sat at €323 per sq m at the end of March, up from €296 per sq m in 2018. The agent predicts that they are likely to remain at this level for the remainder of the year. However new, high-specification, buildings are forecast to achieve higher rents over the coming 24 months.
Cushman’s Sean Coyne says rents for prime logistics and warehousing space in the area reached €80 per sq m in the first three months of the year and were even higher – €86 per sq m – for manufacturing units. He forecasts that rents for logistics and warehousing spaces will increase to €85 per sq m this year. Nevertheless, their yields are forecasted to remain stable at 7.75pc.
“The current shortage of industrial supply in the Galway market is set to continue in the short term as current market rents don’t support speculative development. Therefore, the majority of new product is likely to be ‘Design and Build’ to the occupiers’ requirements,” he added.
Improving confidence in the market is also reflected in new developments down the pipeline.
Following An Bord Pleanála’s decision to grant planning permission to JJ Rhatigan for the first phase of a €200 million mixed-use development in the city’s suburbs in Mervue. Crown Square will feature 5.1 hectares of office, hotel, and housing developments.
The board approved five office blocks ranging from three to six storeys above ground level and a 175-room hotel.
When completed the five office blocks will be able to accommodate 3,156 workers between them, while the hotel and other facilities would bring total employment capacity on site to roughly 3,500 people.
Plans for Phase 2 include 286 apartments intended for renting, along with amenities like a gym, medical centre, a café and shops.
Approval for Phase 2 will be sought directly from An Bord Pleanála under legislation to fast track Strategic Housing Development.
A spokesperson said it is currently engaging with possible operators for the 180-bedroom four-star hotel “and we have not yet decided to sell,” she added.