James Mulhall Featured in the Sunday Business Post on ESG Pressures Facing Commercial Property Owners
Murphy Mulhall’s Managing Director, James Mulhall was recently featured in the Sunday Business Post discussing the growing challenge for commercial property owners as ESG requirements reshape investment decisions, rental values and long‑term asset viability.
ESG or Exit: The Costly Choice for Property Owners
The ongoing debate around whether commercial property owners should upgrade or redevelop older buildings has intensified, as new European research highlights the growing influence of ESG standards on investment, financing, and occupier demand.
A recent survey by SIOR Europe and the University of the Built Environment (UK) found that ESG compliance is increasingly acting as a “market gatekeeper” for office and industrial assets. Owners who fail to upgrade risk facing reduced liquidity, lower rents, and higher vacancy rates as occupiers and investors prioritise sustainable, energy‑efficient space.
James Mulhall: Dublin’s Premium for Best‑in‑Class Offices Is Higher Than Reported
While most Irish respondents estimated ESG‑related rental premiums at below 10%, James believes the true premium for Best in Class (BIC) Dublin offices is closer to 15%.According to James, current quoting rents for top-tier BIC offices in Dublin 2 average around €62.75 per sq. ft., compared with “early €50s” for older Grade A buildings in the same areas. This spread reflects the growing requirement among occupiers for high‑performing, sustainable workspace.
A Market at a Crossroads
James also emphasises that the SIOR findings blend data from office and industrial properties across Europe, and therefore do not fully capture the nuances of the Dublin office landscape—where supply constraints and occupier expectations are sharpening the premium for high‑quality ESG‑aligned buildings.
At the same time, vacancy challenges for older, inefficient stock are becoming more pronounced. Without investment in modernisation, such buildings risk falling behind in a market where environmental performance is no longer optional but essential.
What This Means for Owners and Investors
James’s insights highlight a critical message for the Irish market:
The cost of inaction may be greater than the cost of upgrading.
With occupiers prioritising sustainability, and with evidence of widening rental differentials between new BIC buildings and older stock, Dublin property owners now face a strategic choice:
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- Invest in upgrades to meet rising ESG standards, or
- Risk reduced rental income, liquidity challenges, and value erosion.
James’s contribution to the SIOR study underscores Murphy Mulhall’s continued role in shaping the conversation around the Dublin’s evolving office market.
Read the full article Here
