As businesses in Ireland and indeed the EU as a whole get used to new restrictions and regulations on trade with the UK, one sector to benefit from it all here in Ireland is the industrial property sector, with giants Amazon announcing recently it is to build its first major fulfillment centre in Baldonnell at a whopping 650,000 sq ft.
The new EU trade deal with Great Britain and its effects on the haulage industry, has forced businesses to seek new supply chains and consider establishing or increasing their existing Irish based storage and distribution facilities.
The Baldonnell deal, which industry commentators have said is the largest deal of its type in the Irish market, would allow Amazon to serve Irish customers directly, thereby negating any additional charges or delays brought on by Brexit.
Amazon’s arrival in Ireland may well see an increase in demand for industrial and logistical space from other major Ecommerce players, despite the fact that there is currently a shortage of buildings/space extending up to 3,000+ square metres.
Should developers go out and start throwing up huge logistical hubs across the country? Probably not, but the potential could be there in the near future to warrant such investments.
Overall, I think it’s fair to say Brexit has caused more than its fair share of issues, but if approached correctly the property sector could benefit in Ireland for years to come.
As always if you need any advice or help with your property portfolio, please don’t hesitate to contact us here at KPM Group and we’ll be happy to help in any way we can.
