The development of logistics parks and industrial facilities in Ireland represents a significant opportunity for developers and investors, underpinned by strong occupier demand, the continued growth of e-commerce and supply chain operations, a rising population, and Ireland’s strategic position as a gateway for international trade.
Over the past five years, the development landscape has been dominated by large “big-box” logistics units exceeding 100,000 sq. ft, which accounted for approximately 65% of new supply annually. The proportion of large units is expected to decline to 47% in 2026 and further to 30% in 2027, marking a clear departure from previous development patterns. In parallel, mid-sized and smaller units (between 20,000–50,000 sq. ft) are projected to increase to 18% in 2026 and 17% in 2027. Notably, the market will also see the first meaningful delivery of units below 10,000 sq. ft since the previous cycle. This shift reflects a broadening occupier base, including SMEs and last-mile operators (i.e those handling the distribution to the customer on the final leg of the supply chain), as well as a more cautious approach from developers seeking to diversify risk and improve leasing flexibility.
In Dublin, in 2025 there was an increase in vacancy rates from 1.7% to 2.5%. While this represents a slight loosening of what has historically been an extremely tight market, it is widely viewed as a sign of developer confidence that high-quality, well-located units will be absorbed. Newly constructed buildings now account for a growing share of available space, with units delivered in the 2020s representing over half of vacant stock by the end of 2025. Looking ahead, vacancy rates are expected to remain above the low levels seen in recent years, creating a more balanced market.
One of the most important structural drivers of demand is the continued growth of e-commerce, which has significantly reshaped the logistics landscape. Third-party logistics providers now account for approximately 37% of occupied units, highlighting the increasing importance of outsourced logistics solutions. At the same time, occupier expectations have evolved considerably. Modern tenants are no longer simply seeking warehouse space but are demanding future-ready facilities capable of supporting automation, AI, and sustainable operations. Building must now incorporate high power capacity, advanced digital infrastructure, and flexible layouts to accommodate automation and data-driven logistics systems.
Sustainability has become a defining feature of the market. Leading projects, such as Quantum Logistics Park developed by IPUT, demonstrate this trend by achieving dual certifications such as LEED Gold and BREEAM Excellent. These standards are rapidly becoming the benchmark for institutional-grade logistics assets.
In addition to sustainability, design specifications are evolving to support operational efficiency and automation. Increased unit heights are now a key requirement, enabling higher-density storage and more effective use of cubic space, particularly in land-constrained markets like Dublin. There is also a growing focus on low-carbon construction materials, improved insulation, and natural lighting to enhance both environmental performance and occupier appeal. At an operational level, tenants require future-ready facilities that can support automation, reduce environmental impact, and adapt to emerging technologies.
Conclusion:
The Irish industrial and logistics market is entering a new phase characterised by strong underlying demand but increasing complexity. While macroeconomic conditions are moderating, e-commerce growth and supply chain evolution continue to support the sector. The market is shifting away from large-scale, single-use developments toward more diverse, flexible, and sustainable schemes. Developers and investors who respond to these changing dynamics by delivering high-quality, energy-efficient, and technologically advanced buildings will be best positioned to capitalise on the opportunities in this increasingly sophisticated market.
