Take-up of industrial and logistics space in Dublin surged by 81% in 2025 compared to the previous year, reflecting strong demand in the capital’s commercial property market, according to a new report from property agent Savills.
Total take-up across the city reached 2.39 million square feet, spread across 70 deals. Activity accelerated in the final quarter, with 782,000 square feet transacted across 24 deals, indicating a particularly active close to the year.
The increase in demand coincided with a rise in new supply, with completions totaling 1.48 million square feet. As a result, the vacancy rate edged up from 1.7% to 2.5%, remaining low by European standards. Savills noted that the tight market continues to support rental growth, despite the modest rise in available space.
Third-party logistics operators were a key driver of activity, accounting for 37% of total take-up in 2025, up from just 13% in 2024. Analysts said the sector’s return highlights the growing role of e-commerce and supply chain expansion in shaping demand for industrial property.
Jarlath Lynn, director of industrial and logistics at Savills, said the market is adjusting to changing occupier requirements. “We expect to see a more diverse supply pipeline, particularly in smaller unit sizes, reflecting changing occupier requirements and the higher cost of development,” he said.
Savills’ report points to several trends shaping Dublin’s industrial and logistics property sector. The expansion of distribution networks, the rise in online shopping, and the need for efficient supply chain hubs have all contributed to the increase in take-up.
Despite the jump in activity, the city’s vacancy rate remains low, supporting rental growth. The report suggests that the market is becoming more competitive, with occupiers seeking well-located and flexible spaces to meet the evolving needs of their operations.
The surge in Dublin mirrors broader trends across Europe, where logistics and industrial property have become a key focus for investors and occupiers alike. Analysts say that strong demand and constrained supply continue to underpin growth in rents and investment activity.
Take-up of industrial and logistics space in Dublin in Dublin increased by 81% in 2025, highlighting the city’s ongoing importance as a hub for distribution, warehousing, and supply chain operations. With a low vacancy rate and continued demand from third-party logistics operators, the sector is expected to remain a key driver of commercial property activity in the coming years.
