The Jones Lang LaSalle (JLL) report published yesterday showed that both capital values and rents were still declining in Ireland, though based on the experience of one quarter, the declines were moderating. There is a competing commercial property series for Ireland produced by Investment Property Databank (IPD) and the Society of Chartered Surveyors in Ireland (SCSI, the newly merged unit which brought together the old Society of Chartered Surveyors and the Irish Auctioneers and Valuers Institute) and it has been published this afternoon and is available here. This blog uses the JLL reporting to produce the NWL Index at the top of this page because it is usually published before the SCSI/IPD’s. Both series are referred to in NAMA’s Long Term Economic Value Regulations (Schedule 2).
The SCSI/IPD index confirms prices are still dropping, at 2.3% overall for the quarter which ended on 31st March, 2011. This compares with JLL’s own reporting yesterday which suggested prices were down 1.5% in the quarter. I haven’t tracked the SCSI/IPD index historically but I believe it would show we are now down by ~62% from peak, compared with 61% with JLL’s index. So over time, both indices show a strong correlation with each other.
The SCSI last week published its Quarterly Commercial Property Review which reflected the views of its members on aspects of the commercial property market. The Review is a private publication for SCSI members and has been monitoring the market for the past five quarters. It showed that overall transactions volumes are dropping, as are enquiries. Vacancy levels continue to rise. Lease lengths are falling which might be considered good news for commercial tenants but inducements are also coming down. Of the three basic commercial segments (office, retail and industrial) it is the office segment which looks the most positive in the sense of transaction volumes increasing. Overall it paints a sector still facing challenges. And with an anaemic economic environment and uncertainty over Upward Only Rent Review legislation, it seems that the sector will remain challenging for the next quarter or two at least.
NAMA Wine Lake 
Hi NWL,
Do you know if any analysis or statistics are available on the amount of industrial property now controlled by NAMA?
I was at a talk recently given by a respected member of the property profession (if that’s not become oxymoronic in these cynical times!) and a figure of 13 million square feet of vacant industrial property overhanging the Dublin market alone was quoted. I have no reason to doubt this figure but I wonder how much of it is in the hands of NAMA. It was noted at the talk that much of the vacant space is old stock or on IDA estates with restrictions on use imposed on tenants. Such vacant industrial property will need managing by NAMA until the market picks up or a creative use is found for the old stock.
I am interested to know if it is possible to work out how much industrial space is with NAMA. Any help much appreciated.
@Bunbury, there is certainly information available on the total stock of industrial property and vacancy. See this recent report which examines the Dublin industrial property market, for example.
http://sherryfitzgerald.briefyourmarket.com/Goto/3733-70-HPIYRC
However I am not aware of any information from NAMA at the level you seek. We get the odd snippet from the agency eg it controls 6,000 apartments within the M50, but there is very little real detail and the information that was released with the first two tranches was at a very high level. You could always ask them directly.