Weekly Market Insight

Latest Economic & Market Update 22nd February 2021

22nd February 2021

Good afternoon, it is February 22nd 2021 and here is your economic and market update from BlackBee. 

Today’s focus:

  • Savills Q4 2020 Dublin Office Market Report released.
  • Aedifica acquire Bridhaven care home in Mallow, Co Cork for €25m.

Despite overall GDP increasing, office based employment did not escape the fallout from the pandemic. CSO figures show that total employment in the ICT sector fell -1.5% in Q3 2020 in comparison to Q3 2019. Administrative, Support and Public Admin jobs fell by 4.5% over the same period. Despite the decline in employment, the office sector has proven more resilient to the pandemic than other sectors of the economy. Accounting for over one quarter of Irelands jobs, the office based sectors accounted for only 15% of those on the PUP. Office take up in Q4 equalled 30,010 sq.m bringing the total take up for 2020 to 161,322 sq.m. In 2019, total office take up equalled 302,902 sq.m. However if 2020 is broken down by quarter, Q1 accounted for 63% of the years total take up and nine of the top ten deals transacted in 2020. The sum of Q2, Q3 and Q4 compared against the same period average from 2015-2019 was 74% lower. Tech firms were the most active in office take-up accounting for 70% of take up. ICT companies are expected to continue to account for a sizeable share of take-up in 2021. As remote working has caused uncertainty about occupiers future requirements, the average letting size has fallen to 978 sq.m since Covid, just over half of the 1,721 sq m average in 2019. The overall average letting size for 2020 was 1.722 sq.m however this was because of an above proportion of large transactions in Q1. Savills expect to see a take-up rise in the second half of the year following an expected lacklustre H1, if the majority of the working population are vaccinated by Q3. They expect smaller office sizes and fitted solutions to be more in demand in the short run but expect larger longer term requirements to resume as the year progresses. (Source: Savills Q4 2020 Dublin Office Market Report).

Brussels listed healthcare real estate investment company, Aedifica has acquired the Bridhaven care home in Mallow, Co Cork for €25m. Bridhaven care home is a 184 resident care home and the acquisition marks the company’s first investment in Ireland. Aedifica has a market valuation of around €3bn and has developed a portfolio of over 490 sites in Belgium, Germany, the Netherlands, the UK, Finland, Sweden and Ireland. Due to the fragmented market and the ageing population creating future demand, Stefaan Gielens, Aedifica’s CEO said Ireland provides an attractive investment opportunity. Gielens also said that they are already working on further development on their groups activities in Ireland. (Source: Irish Independent).

Best & Worst Performers of Large Cap US Stocks on Friday
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Global Market Update
(as at close of markets 19/02/2021)